How does this work?

Nicky321

Firstly hope someone can understand what i am asking, and secondly a thankyou to everyone.

Just been on the Ltd Co tax calculator and the following are the figures. Me and My husband are 50/50 shareholders. We both take a small monthly wage from the Co, mine is included in the annual outgoings. His T/C is 1220M and mine is 990N, Company runs from 1st June 16 to 31st May 17. Does it look right? Working on Tax Year 2016/2017?

first figure yearly, second figure monthly


Limited Company
Profit £ 28,259.76 £ 2,354.98
Your Salary £ 11,000.00 £ 916.67
Employer's NI £ 398.54 £ 33.21
Taxable Profit £ 16,861.22 £ 1,405.10
Corporation Tax £ 3,372.24 £ 281.02
Maximum Net Dividend £ 13,488.97 £ 1,124.08
Personal Tax
Your Salary £ 11,000.00 £ 916.67
Employee's NI £ 352.80 £ 29.40
PAYE Tax on Salary £ 0.00 £ 0.00
Gross Dividend £ 13,488.97 £ 1,124.08
Tax on Dividend £ 546.67 £ 45.56
less Tax Credits £ 0.00 £ 0.00
Student Loan £ 0.00 £ 0.00
Total Take Home £ 23,589.50 £ 1,965.79

Where do we take the dividends from (maximum net dividend 13,488.97)? and how much can we take? How would it affect the below figures?

Corporation tax due to HMRC: £3,372.24.
Self Assessment Amount owed to HMRC: £546.67. Payment on account for 2017/18: £273.34.
Total Self Assessment due by 31st January 2018: £820.01.
A further payment on account due by 31st July 2018: £273.34.
This does not include any payments on account you may already have made for the 2016/17 tax year.

Nicky321

Thankyou,
I used the calculator from
http://www.employedandselfemployed.co.uk/limited-company-tax-calculator

My husband is also a director, and we have an accountant to do this stuff.

I am just trying to understand how it all works.

Pennywise

I don't think it's wise to trust these online tax calculators. The one you've used is wrongly calculating corporation tax at 20% when it's currently 19%. At best, they give you an indication of how things work, but tax is complicated, and limited companies are complicated, and it's therefore nigh-on impossible to create a comprehensive calculator that can cover all the permutations with any degree of accuracy.