Net Dividends Confusion. Plz Help!!

[adityaisukapalli]

Hello,

I am working through my own Limited Company. I am taking 8k Salary + 30k net Dividends = 38k to prove my earnings.

Problem is: I have taken all the 30k as net devidends where my company earned 30k (apart from 8k salary). Last 2 months of the tax year, i wont take any money, so that i can pay corporation tax on this 30k dividends.

Because i have taken every thing as net dividends till now, am i under trouble ? Because, my accountant needs to give me a letter of break down of earnings (including Profits ?).

[adityaisukapalli]

Please reply, any one!!

[Sushil-ACCA]

Hello,

I am working through my own Limited Company. I am taking 8k Salary + 30k net Dividends = 38k to prove my earnings.

Problem is: I have taken all the 30k as net devidends where my company earned 30k (apart from 8k salary). Last 2 months of the tax year, i wont take any money, so that i can pay corporation tax on this 30k dividends.

Because i have taken every thing as net dividends till now, am i under trouble ? Because, my accountant needs to give me a letter of break down of earnings (including Profits ?).

Working based on yr data

XY Z LTD

Sales 36,000.00
Expenses 8,000.00
Salary 8,000.00 Profit before Tax 28,000.00
Dividend 33,333.33 Tax @ 20% 5,600.00
Profit After Tax 22,400.00
41,333.33 Dividend 30,000.00
Reseve -7,600.00


THIS is yr situation which shows clearly wrong accounting


this should be ideal situation


XY Z LTD

Sales 43,000.00
Expenses 9,000.00
Salary 8,000.00 Profit before Tax 34,000.00
Dividend 30,000.00 Tax @ 20% 6,800.00
(Gross) Profit After Tax 27,200.00
38,000.00 Dividend (Net) 27,000.00
Reseve 200.00