We currently advise a pay structure, for the tax year 6th April 2018 to 5th April 2019, as follows:
£702 salary per month (£8,424 total salary for the year)
£35,006 dividends for the year (approximately £2,917 per month)
If you are not a Scottish tax-payer, please click here as your tax rates and allowances are different.
Please ensure the company has sufficient profit to pay this level of dividends. You can refer to the ‘Dividends Available’ figure on the dashboard of your portal or check with your accountant.
This will bring you up to the higher rate tax limit and give you a tax liability of £2,218.50 due by 31st January 2019. As the payment due is over £1,000, a payment on account will also be required, less any payments on account that you have made in previous years.
If you anticipate any additional personal income such as rental property, interest, dividends from shares, benefit in kind or any other taxable income, please update your portal and provide the additional to your accountant and they will advise.
As a general guide (and based on only the £702 per month salary) here are the anticipated levels of tax due on specific levels of dividend payments:
Dividend Est Personal Tax Bill 2018/19