Taking dividends – the formalities
There is only one way to find the answer to how much you can take in dividends from your limited company and that is from your accounting records.
Paying a salary to your spouse
If your spouse does not work elsewhere and they actually do some tasks within the business then you could consider paying them a salary.
2017 salary and dividends fact sheet
Our Salary and Dividend factsheet gives details of our recommendations for taking a salary and dividends from your limited company. Everyone is different – the solution given here is generic.
Get the timing of your dividends right
All too often shareholders are presented with a tax bill larger than anticipated because they’ve paid out dividends in the incorrect tax year. It’s important to remember that Dividends are reported on your self assessment by tax year.
Taxes paid by the self employed
Are you self employed? If so, here is information of the taxes you need to pay including details on income tax, national insurance and class 2 and class 4 national insurance payments.