Hello,
I have been contracting for a year and a half now and I have some money in my bussiness account I would like to pay as dividend.
I have been paying myself an annual salary of £8424 and haven't paid any dividend so far.
Checking the rates,we have a £2000 allowance and a 7.5% basic rate.
I am intending to pay £20000 in dividends , which means £1,419 of tax.
I was thinking about using an ISA account to pay dividends. Theoretically dividends paid in ISA account (up to 20k) are tax-free? Would it make any difference if I pay dividends to my personal account or to an ISA account?
It is the first time I pay dividenda and I am new with ISA accounts as well..
Many thanks
I have been contracting for a year and a half now and I have some money in my bussiness account I would like to pay as dividend.
I have been paying myself an annual salary of £8424 and haven't paid any dividend so far.
Checking the rates,we have a £2000 allowance and a 7.5% basic rate.
I am intending to pay £20000 in dividends , which means £1,419 of tax.
I was thinking about using an ISA account to pay dividends. Theoretically dividends paid in ISA account (up to 20k) are tax-free? Would it make any difference if I pay dividends to my personal account or to an ISA account?
It is the first time I pay dividenda and I am new with ISA accounts as well..
Many thanks
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