Hey Guys,
Quick question, I think I know the answer.. but can't seem to find confirmation online.
If one has a full time job with Company A, and is the sole director of Ltd Company B, does the dividend tax on withdrawals take into consideration the salary from being an FTE in Company A?
As an example;
Salary at company A: 100k
Salary as Director of Company B: 0.00
Dividends from Company B: 15k
Tax on dividends: 4,225
2k tax free, then 28.2% tax on 13k
If I'm correct, is there a better way of drawing down dividends?
Quick question, I think I know the answer.. but can't seem to find confirmation online.
If one has a full time job with Company A, and is the sole director of Ltd Company B, does the dividend tax on withdrawals take into consideration the salary from being an FTE in Company A?
As an example;
Salary at company A: 100k
Salary as Director of Company B: 0.00
Dividends from Company B: 15k
Tax on dividends: 4,225
2k tax free, then 28.2% tax on 13k
If I'm correct, is there a better way of drawing down dividends?
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