Advice please on taking dividends out of my Ltd company

Oranjeboom

Hi!

Hoping someone can assist/confirm some rough calculations here. I do have an accountant but he is away at the moment (1 man outfit) and I don’t have anyone else to discuss this with.

Background:
I have a Ltd company and this financial year I need access to take out quite a bit of money (i.e. I need around 100k). Don’t want anything dodgy, just by the book. Want to minimise tax where legally possible via dividends. I have the money in the account as well and I am the only share holder.

I have an annual salary of 12k and have no other income from other sources etc.

Last financial year (2013) I took out the maximum tax free dividends I could (around 26500) and have that amount saved in my savings account now. So I need another 73,500.My tax code is 1000L

So here are my calcs:

2013 year:
Took maximum tax free divs: 26500 (salary of 12k has been spent!)

2014 year:
Take max tax free divs: 26800
Take another 67k as taxable divs (that would be taxed at 25% I believe?*) giving me 50k after tax.

Total amount I would have now after tax would be 103,000, correct?
Divs from 2013: 26,500
Divs from 2014: 26,800
Further dividends for 2014: 50,000 (after taking 67k taxable divs)*

Is my thinking correct?

*I think I can take out divs up to 150k at the higher rate of 32.5% but after tax credit I am in effect only liable to pay 25% tax.

Obviously I will speak to my accountant but I need to know now whether I will have access to this money.

Thanks in advance.

OB

Pennywise

Looks OK except that the personal tax free allowance tapers away when your total income is between £100k-£120k, so there's a higher marginal tax rate when your gross taxable breaches £100k, which yours would, so you need to allow for a bit more tax.

Oranjeboom

Thanks Pennywise, If that extra few 3k pushes me into the next bracket over 100k, I will reduce the dividends I take. Raid the wife's piggy bank...