Dividend Tax Voucher and Tax Credits

[Adi Ady Ade]

Hey all.

Just trying to do both my personal and company tax (08/09) and have come across something that's baffled me.

I moved £17,000 from my company account to my personal account with the intention of this being a dividend payment. I'm now filling in the personal tax form online and wondering about the amount I should place in the 'Dividends from UK companies' field which got me thinking about the tax voucher.

So I'm wondering, because I moved £17,000 from company to personal, should my voucher look like this:

Holding: 1 Ordinary Shares
Dividend Rate: £17,000 per share
Dividend Payable: £17,000
Tax Credit: £1888

or this:

Holding: 1 Ordinary Shares
Dividend Rate: £15,300 per share
Dividend Payable: £15,300
Tax Credit: £1700

Thanks for any guidance.

[Sally BFCA]

Hi

Your first option is correct.

£17,000 divided by 90 times 100 equals the 10% tax credit.