How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

I have a micro-business which is a limited company. This pays

Customer Question

I have a micro-business which is a limited company. This pays corporation tax. Are dividends then taxed?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question..Dividends paid by the company is distribution of taxed profits.These are not taxed in the company books again. These dividends paid are income in the hands of an individual who is in receipt of them.From 6 Apr 2016, how dividends are taxed for income tax purposes is covered here http://www.rossmartin.co.uk/directors/tax-efficient-remuneration/1591-summer-budget-2015-dividend-tax first £5,000 of dividend income is tax free as it is covered by dividends personal allowance I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.