Dividend Declaration 2010/11 and payment dates for new tax year ?

[eliquant]

What is the Gross Dividend threshold for year 2010/2011 for the lower rate of tax and which day in May this year is it safe to write out a dated dividend declaration form and pay yourself so that it falls into the new tax payment year 2010/11 ?

Only asking because my accountant is on holiday and strangely couldn't find it on the web.

[Punter]

Do you mean the threshold for basic rate income tax? It's ₤37,400, so you can pay a dividend of ₤37,400 plus your personal allowance (normally ₤6,475 but yours may be different) less any salary and not pay higher rate tax. You may also need to factor in other income, interest, benefits in kind, allowable expenses and personal pension contributions.

You can do this on 6th April for 2010/11.

[Fred Bloggs]

When working this figure out, don't forget that it's the "gross" dividends that count against your taxable income, not the amount you actually collect.

[Sockpuppet]

Indeed.

Times all dividends by 1.1 to work out the div rate to calc against tax.

[escapeUK]

Indeed.

Times all dividends by 1.1 to work out the div rate to calc against tax.

I think I would have fallen foul of that one. Another reason its agood job I decided to get an accountant and another reason to leave money in your company's bank account and spread the dividends out.

[Hex]

Indeed.

Times all dividends by 1.1 to work out the div rate to calc against tax.

Nope - divide the net dividend by 0.9 to work out the gross dividend. Multiplying it by 1.1 is not correct (although it's close).