how to calculate dividend

[fahadz1]

i want to know do we have to calculate gross dividend or net dividend ? as part of earning ?

[push]

i want to know do we have to calculate gross dividend or net dividend ? as part of earning ?

Gross dividend payable to the shareholder.

[ChetanOjha]

I thought its the net dividend which you will be using as the tax on the dividend is already paid by company(ofcourse if you are under you £38k limit)

[fahadz1]

Thanks for the reply. My accountant give me dividend voucher showing net and gross divedent.

Gross is around 5000 and net is around 4000.

While calculating the earning do i have to add 5000 gross or net 4000 ?

please let me know cause in guidance notes there is nothing described about dividend.

2nd question

my account did only my company accounts. do i need another letter from accountant showing all 12 months accounts summary or not ?

thanks

[dahokolomoki]

I do think the form is asking for your net earnings (as I remember when filling out mine I had put down my gross salary for my job, instead of the net after tax).

Dividends in this country is paid net of 20% tax (i.e. 20% tax is automatically taken from the dividend issued by the company before it is given to you). So you will need to calculate the gross from that.

However, as you mentioned, your accountant has already prepared net and gross for you, so just take the gross amount and stick it in your form, and just ensure all your other earnings stated are gross as well.

[manishmittal]

I do think the form is asking for your net earnings (as I remember when filling out mine I had put down my gross salary for my job, instead of the net after tax).

Dividends in this country is paid net of 20% tax (i.e. 20% tax is automatically taken from the dividend issued by the company before it is given to you). So you will need to calculate the gross from that.

However, as you mentioned, your accountant has already prepared net and gross for you, so just take the gross amount and stick it in your form, and just ensure all your other earnings stated are gross as well.

Wrong: Dividend actually paid is grossed up as below:

Dividend actually paid / 90 x 100

say for example you have withdrawn dividend of £30,000 then the net dividend would be £30,000 and gross dividend would be £30,000/90x100 ie £33,334. When you file a tax return, you will get tax credit of £3,334.

[push]

I do think the form is asking for your net earnings (as I remember when filling out mine I had put down my gross salary for my job, instead of the net after tax).

Dividends in this country is paid net of 20% tax (i.e. 20% tax is automatically taken from the dividend issued by the company before it is given to you). So you will need to calculate the gross from that.

However, as you mentioned, your accountant has already prepared net and gross for you, so just take the gross amount and stick it in your form, and just ensure all your other earnings stated are gross as well.

Wrong: Dividend actually paid is grossed up as below:

Dividend actually paid / 90 x 100

say for example you have withdrawn dividend of £30,000 then the net dividend would be £30,000 and gross dividend would be £30,000/90x100 ie £33,334. When you file a tax return, you will get tax credit of £3,334.

If the Dividend voucher shows Gross Dividend why try to re-calculatete using the net amount. Earnings should be shown (computed) as if there was no personal income tax in UK.

[ssoct98@hotmail.com]

Only net is considered towards your income,gross is for company not for you even you are owner.
If 9900 is paid in ur bank its meant 11000 is gross,so u considered 9900 towards urincome.
I believe thats the way u calculate ur dividend,what senior say?

[ssoct98@hotmail.com]

seniors plz put some light is am right as above.

[John]

Wrong: Dividend actually paid is grossed up as below:

Dividend actually paid / 90 x 100

say for example you have withdrawn dividend of £30,000 then the net dividend would be £30,000 and gross dividend would be £30,000/90x100 ie £33,334. When you file a tax return, you will get tax credit of £3,334.

I totally agree with anything you have posted .... and totally disagree with other interpretations.

The gross income for tax purposes is the amount of the dividend, plus the tax credit of 1/9 of the dividend.

All the above of course assumes that we are talking about a UK company, of course.

[ssoct98@hotmail.com]

John you better explain in easy way,
Question here is that what to claim towards your earnings,
If a person get net dividend of 30,000 pounds and gross would be 33000,and get tax credit for that,but a person who go for extension can claim towards his earning point as 30,000 pounds not 33000 pounds.

Thats a simple understanding,so can you agree or not?

[fahadz1]

i'm still not sure should i put gross dividend or net dividend as part for my earning claimed ????

should i submit dividend vouchers stamped by accountant one ? or my company one ?


secondly do i need to submit print out of points calculator or not ?

thanks

[ssoct98@hotmail.com]

Seniors are also not clear,but i believe you consider net towards your earning.Voucher better if signed and stamped by accountant.

[fahadz1]

my accountant said i have to use gross dividend amount and my company stamp should be on it.

[ssoct98@hotmail.com]

I am also confused but trying to get in touch with HO,and they also said gross so i believe i m wrong,but better get advice from seniors also.

[John]

should i submit dividend vouchers stamped by accountant one ? or my company one ?

Whenever a company declares a dividend it is the responsibility of the Company Secretary to prepare a dividend voucher stating the amount of the dividend paid, and the amount of the Tax Credit attached to that dividend.

(Private companies are no longer required to have a Company Secretary and for a company that no longer has one, it then falls to the Director(s) to ensure that the dividend voucher is prepared and given to each shareholder.)

[blue.olive]

should i submit dividend vouchers stamped by accountant one ? or my company one ?

Whenever a company declares a dividend it is the responsibility of the Company Secretary to prepare a dividend voucher stating the amount of the dividend paid, and the amount of the Tax Credit attached to that dividend.

(Private companies are no longer required to have a Company Secretary and for a company that no longer has one, it then falls to the Director(s) to ensure that the dividend voucher is prepared and given to each shareholder.)

Principle for Gross and net dividend is same like as of Salary
in case of salary u got net salary in your account but ur gross salary is before tax in your payslip
similary you receive net dividend in your account and but on dividend voucher its states what is your Gross dividend and your tax deduction.

Regards Olive

[republique]

You guys made it all too complicated
you declare your gross for the HO
and your accountant gave you the gross amount of the dividend
and that is what you declare.