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sun_ksh wrote:Hello
Myself will be applying for tier 1 extension –general this month on 15th. I am limited company employed as director and claiming for 1-1-10 to 31-12-10 period (12 month period).
Upto 31-3-10 I have my company accounts filled.
For the period 1-1-10 to 31-1-10, my company earned 30000 pounds- with app.10% VAT return the turnover is approximately 27000 pounds. I withdraw salary of 1000 / month. So the taxable company earning for this period is 24000 pound. Take 20 percent company tax and the company net profit after tax is app 19000 pounds. This 19000 is available to withdraw as dividend. Since I am 50 percent shareholder in company I can withdraw 9500 as dividend based on the actual company earnings during 1-1-10 to 31-1-10. But I have withdrawn 20000 dividends in the said period because there was reserve fund available in company account carried over from last year.
My confusion is I am right is showing 20000 dividend as my earning for the period between 1-1-10 to 31-1-10? Or do i need to show only 9500 pounds as my earning from dividends. Please advise what is the correct way? Is the dividend need to be from the net profit made by the company during the period which we claim for?
From 1-4-10 to 31-12-10 period also I am relying on dividend higher than earned (since there was reserve fund available in company) to satisy the earning criterion of 40000 pounds which will fetch me 45 points for extension application.
Thanks
Sunny
sun_ksh wrote:Hello
Myself will be applying for tier 1 extension –general this month on 15th. I am limited company employed as director and claiming for 1-1-10 to 31-12-10 period (12 month period).
Upto 31-3-10 I have my company accounts filled.
For the period 1-1-10 to 31-1-10, my company earned 30000 pounds- with app.10% VAT return the turnover is approximately 27000 pounds. I withdraw salary of 1000 / month. So the taxable company earning for this period is 24000 pound. Take 20 percent company tax and the company net profit after tax is app 19000 pounds. This 19000 is available to withdraw as dividend. Since I am 50 percent shareholder in company I can withdraw 9500 as dividend based on the actual company earnings during 1-1-10 to 31-1-10. But I have withdrawn 20000 dividends in the said period because there was reserve fund available in company account carried over from last year.
My confusion is I am right is showing 20000 dividend as my earning for the period between 1-1-10 to 31-1-10? Or do i need to show only 9500 pounds as my earning from dividends. Please advise what is the correct way? Is the dividend need to be from the net profit made by the company during the period which we claim for?
From 1-4-10 to 31-12-10 period also I am relying on dividend higher than earned (since there was reserve fund available in company) to satisy the earning criterion of 40000 pounds which will fetch me 45 points for extension application.
Thanks
Sunny
Hi,sun_ksh wrote:Sheraz Khalil MBA ACCA , Sushil-ACCA: Any guidance on this?
thanks