News - Feb 2006 - Limited Companies / Taxable Profits

If you trade as a limited company and your taxable profits (that is profit less salary but before dividends) is less than £50,000 any dividend due now would most efficiently be taken between the 1st and the 5th April. 

Of course any dividend consideration now must bear in mind any other income and dividends already drawn this year in order to establish that the most efficient amount is drawn with regard to the basic rate band and exposure to higher rate tax.

If you require help in calculating the final dividend for the year please let me know and I will attach or dividend calculator spreadsheet (NB this is a tool for those who wish to draw maximum dividends without incurring higher rate tax liability).