Quick tax question

[gingerpaul]

Hi all, I was wondering if you could answer a quick question for me.

I'm currently running through the numbers on a business plan and was wondering whether corporation tax was calculated before or after any dividends payments. It's only a small uni project but I would like to get it right.

Thanks in advance.

[Eric Mc]

Before.

Dividends are distributions of profits remaining after tax has been calculated. So tax has to be calculated on the prfits BEFORE dividends first.

[gingerpaul]

Thanks Eric.