Thats the answer I was looking for
Cheers,
Thats dead right, you can't claim the dividend tax credit if you don't use it.
By my best guess, any divi/salary combo of less than about £35k per year is best paid with a nominal salary (say £4,615) to take advantage of the dividend tax credit.
Anything over that, the most tax effective route is to go 100% divi (the higher tax rate of 32.5% on divvis over £29,900 mops up any tax credits left over).
As for being worried about an tax investigation for paying 100% dividends, well....provided I'm outside IR35, where exactly is the problem?
Nice answer tim123,
Cheers,
Thats dead right, you can't claim the dividend tax credit if you don't use it.
By my best guess, any divi/salary combo of less than about £35k per year is best paid with a nominal salary (say £4,615) to take advantage of the dividend tax credit.
Anything over that, the most tax effective route is to go 100% divi (the higher tax rate of 32.5% on divvis over £29,900 mops up any tax credits left over).
As for being worried about an tax investigation for paying 100% dividends, well....provided I'm outside IR35, where exactly is the problem?
Nice answer tim123,
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