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UK Window Cleaning Forum => Frequently Asked Questions & Useful Resources => Topic started by: dave0123 on November 16, 2006, 08:17:58 pm

Title: Dividends & Tax
Post by: dave0123 on November 16, 2006, 08:17:58 pm

Hi,

You guys who are  a LTD company what is the tax threshold on dividends? for example sole trader you can earn near enuff 5000 before paying tax. Iv tried looking on google but i carnt find it.

Thanks Dave

Title: Re: Dividends & Tax
Post by: robbie14000 on November 18, 2006, 04:41:25 pm

Dave, I am not a LTD company but looking into it.
I believe the threshold is £10,000 for LTD.
The more you earn as LTD you will still only pay 23% and then take dividends.
Or you can split your company and have two businesses.
Regards Robbie -Clearshine - Harrogate

Title: Re: Dividends & Tax
Post by: John Kelly on November 19, 2006, 09:40:47 pm

Regardless of whether you take drawings from a sole trader or partnership or dividends from a limited company, it is still classed as income. You will have a personal allowance depending on your circumstances. Earnings over this amount are taxed.
I think you probably mean corporation tax which is an additional tax on your profits over a certain amount. Can't think what the figures are though.