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Help, dividend tax issue

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coolwch
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Posts: 5
Joined: Wed Dec 15, 2010 10:36 am

Help, dividend tax issue

Post by coolwch » Wed Feb 23, 2011 9:58 am

Hi,
i have my own limited company, and only my self in it.
i declare dividends till now is 12k. (which i have 12k all in my personal account)
As i know HSMP can count dividend as personal earnings, is this 12k before tax or after tax?
my accountant agency said, the 12k dividend for my personal dont need pay tax, but my company will need pay income tax later. so i am not sure is the only 12k is my personal earning or the 12k*1.21= 14100 could count as my personal eanrings.
if it is the 14.1k could count, what i need from my accoutancy or my own company to prove it?
Thank you very much for help!!

coolwch
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Posts: 5
Joined: Wed Dec 15, 2010 10:36 am

Post by coolwch » Wed Feb 23, 2011 10:31 am

solved my self, after few calls from immigration solictors, HO, and accountants.
your accoutant should provide a dividend voucher you can fill your self or you company fill it.
the calculation is the net dividend / 0.9.
E.G: 1000 dividend you claim = 1000/0.9 = 1111.1 tax credits
which this 1111.1 could count as your personal earnings.

adityaisukapalli
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Posts: 205
Joined: Thu May 06, 2010 10:14 am

Re: Help, dividend tax issue

Post by adityaisukapalli » Wed Feb 23, 2011 11:00 am

coolwch wrote: so i am not sure is the only 12k is my personal earning or the 12k*1.21= 14100 could count as my personal eanrings.
if it is the 14.1k could count, what i need from my accoutancy or my own company to prove it?
Thank you very much for help!!
In you case (same as mine),

Net Dividend: 12,000
Tax Credit: 1,333.33
Gross Dividend: 13,333.33

You can claim point for Gross Dividend: 13,333.33

To prove this, You need Dividend Voucher made by you(company) and sign it as a director of that company. You should confirm the date received, net, gross dividends, tax credits and number of shares holding:100 on that voucher. To support this you also need to show Personal Bank Statements with that Net dividend credited on the date specified on the Voucher.

It will be good if your accountant can give you a letter with your dividend details.

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