Micro-company dividend taxation question

mrodent · 18 December 2018 at 5:06PM

Hi,
[This is probably not the best forum to ask this... if anyone knows of a free forum for small company type questions re tax please let me know]

I just filled in the first draft of my Self-Assessment. In 2017-18 my company paid me £8200 salary and I received £8690 as dividends (sole shareholder). Plus £10 interest (!) gives "Total income received £16900.00".

I'm very puzzled by these two lines in the calculations, under the heading "Dividends from companies, etc.":
"Basic rate at nil rate - £5000.00 - x 0 % - 0.00
Basic rate - £390.00 - x 7.5% - £29.25"

I can't understand where on earth that £390 figure is coming from. Can anyone say?

Pennywise · 18 December 2018 at 5:22PM

mrodent wrote: »

I can't understand where on earth that £390 figure is coming from. Can anyone say?

Your dividends are taxed as follows:-

Balance of unused personal allowance £3,300 (£11,500 less wage £8200)
Zero rate dividend band £5,000
7.5% basic rate dividend band £390
Total £8,690

Micro-company dividend taxation question

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