Balance sheet and dividends

The balance sheet shows the limit of what dividends can be drawn: This is made up of the following sections: Fixed assets Current assets Current liabilities Net current assets (or liabilities) Long term liabilities Which is made up by the reserves (a limited company...

Profit and loss explained

This time we look at the profit and loss account: The format of a profit and loss account is pretty standard and of particular interets this time is how much can be drawn as a dividend.  From the top Sales – this is the value of goods or services sold Cost of...

Dividend tax planning options

There are dividend tax planning options which can be taken before 5 April 2016 to extract as much as possible before the changes take effect: I am advising clients who have profit and loss reserves as follows: If they are basic rate taxpayers to draw as much as...

Dividend tax for higher rate taxpayers

In the second part of the dividend tax series we consider the situation for higher rate taxpayers In summary Even higher rate taxpayers will receive the £5k tax free allowance Once the higher rate threshold has been passed the dividend tax will be 32.5% If a business...

Dividend tax for basic rate taxpayers

Watch my video to see how this new dividend tax will affect you as a basic rate taxpayer after 6 April 2016 In summary Everyone will receive the £5k tax free allowance This will only apply once your income has exceeded the personal allowance limit (£10.6k 2015/16)...

Autumn Statement and Spending Review 2015

With two Budget’s already this year the Chancellor clearly felt he had said enough about tax changes and in the Autumn Statement stuck mainly to statistics on the improving economy quoting many positive percentages from the Office for Budgetary Responsibility...