Urgent !!!! Need your advise on NET Profit understanding

[bathra10]

Dear Friends,,

Need your advise desperately , I work full-time as a contractor (as a director) through my LTD company. I am planning to show income via :

Dividends earned - Which will be shown through Dividend Vouchers (clearly showing Gross and Net Dividend)

And the NET profit After Tax .,, which I believe is the income left after paying Corporation TAX ,,,, now here is where the confusion is... Basically Am I correct in thinking that this in the eyes of UKBA it is actually what is retained in the Business after paying tax AND paying myself Dividends ?? which is 30 in my below example.. Am I correct in thinking in this logic

For eg

Earnings after business deductions is 120

Corp tax @ 20 % paid is 20

NET PROFIT AFTER TAX is 100

Net Dividends paid is 70

AND Retained earning is 30



So in the above case my earnings is 107,, comprising of

Gross Dividend income 77 (70 + 7 )

Retained earnings in the business 30



Would appreciate your opinion.

Thanks
Bathra


PS : I don't want to show Salary income ,,, just a preference to show dividends and Net Profit Share

[geriatrix]

As suggested earlier, please continue in the existing topic.