Dividend Taxation.
Discussion
Please correct me if I'm worng in the following example which is my understanding of Corp Tax and Div Tax Credits.
Say my Company makes a taxable profit of £10,000.
The small co. CT on this is 19% so, my co. puts aside £1,900 for that liability. That leaves a net profit of £8,100.
If that profit were then to be distributed via dividends to shareholders then the company would alrady have paind all necessary taxes and the 10% dividend tax credit is rolled up in the Corp Tax. In other words the whole 8,100 is distributable with an assumed tax credit of £810 which does not need to be put aside as it was already included within the Corp Tax...
Say my Company makes a taxable profit of £10,000.
The small co. CT on this is 19% so, my co. puts aside £1,900 for that liability. That leaves a net profit of £8,100.
If that profit were then to be distributed via dividends to shareholders then the company would alrady have paind all necessary taxes and the 10% dividend tax credit is rolled up in the Corp Tax. In other words the whole 8,100 is distributable with an assumed tax credit of £810 which does not need to be put aside as it was already included within the Corp Tax...
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