Best Accountants in Petersfield

New post: How to pay yourself dividends limited company As a limited company owner, one of the most tax-efficient ways to pay yourself is through dividends. Paying yourself through dividends involves several straightforward steps: calculating company profit, holding a Director’s Meeting, documenting and storing the minutes, producing a dividend voucher, and declaring the dividend. You can distribute dividends at any time, provided your company generates enough profit to cover these payments after Corporation Tax. This article explores the process of paying yourself dividends, the tax implications, and why combining a salary with dividends can be highly beneficial. WHEN CAN YOU START TO PAY DIVIDEND INCOME? You can pay or distribute dividends at any time and frequency during the year, as long as your company is generating enough profit to be able to pay those dividends. However, you do need to ensure that all the respective dividend payments are covered solely by your company’s profit net of CT (Corporation Tax). Apart from deciding on when and who to pay dividends to, you can also decide how much you want to pay. HOW MUCH IN DIVIDENDS CAN I PAY MYSELF A YEAR? At the moment, there is no set limit on how much dividend you can pay yourself in a year, although it does depend on how much profit you are generating – as you can only pay dividends on profits. With that said, the more dividend you pay yourself, the higher your dividend tax will be, especially as you pa...