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Dividends up to 5K are tax free this tax year, but the concession drops to 2K in 18/19. Dividends no longer have tax deducted, you pay on self assessment at the end or every tax year. Your wife must be a shareholder to receive dividends and you must receive them too parri passu with your shareholding, although you can refuse them. Dividends do not count in the Corporation Tax (CT) computation.
I do hope that you have found my reply of assistance.
What other income does she have?
Thank you for your support.
45K - 11.5K = 25K = 58.5K. Total tax would be 25K @ 40% [10K] and 32.5K @ 20% [6.5K], total 16.5K tax due.
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