PDA

View Full Version : whew!! tax on dividends



trapiste
17th March 2004, 16:55
I don't know about the rest of you but that really had me on the edge of my seat.

Basically my contract terminated a couple of weeks ago and I've been looking around. I heard about the possible changes to tax on dividends and got decided to look into options in the permy market. Basically was made a perm offer which I stalled till today when I got another offer for a contract. After Brown's speech, while everyone was still assessing the impact I declined the perm job and took the contract.....glad I did.....that was really close....good to be back in the clear.....

Any of you out there, try to avoid being between contracts during the lead up to the Budget, it just isn't good for your health.

mailman
17th March 2004, 18:10
what was it that made you go contract again?

Mailman

trapiste
17th March 2004, 19:42
The presumtion that I will earn more than 10k this year.

Hmm perhaps I still don't understand this right, but I got the impression that the first 10k will be taxed at 19% and everything after that at the normal rate. I don't predict making over 50k, but between 30-45....I am still the guy looking at blueprints and hammering the nails....

I wrote the above after receiving a post which seemed to imply that it was not all that bad after all.

Correct me if I am wrong, certainly discussions in other sections of this forums and accountancy website have left me even more confused.

www 1staccountancy biz
17th March 2004, 21:16
The effects will depend on the company's taxable income for the year....speak to your accountant as to how much/better or worse off you will be....also check whether you are on the new VAT scheme as this may balance out the any additional tax due. :hat

WWW ITDoctors co uk
18th March 2004, 00:21
Opting for flat rate VAT and filing your PAYE return online with your accountant will hopefully more than offset the £600 - £800 of additional tax you will be paying on dividends.