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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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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: 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 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.