I am an IT contractor working through a Limited Company. I invoice approx £100k per year + VAT (I am on the flat rate scheme) and have little expenses. I don’t have any other income outside of my earnings from my company (salary and dividends) and I am not caught by IR35. I have to… Read More

Tax on Dividends and Free Dividend Tax Calculator On Wednesday 8th July 2015 George Osborne delivered a summer budget and one of the biggest changes announced was dividend tax and how the tax on dividends changes from April 2016, this is called the Dividend Allowance. We outline in this article how the new tax on… Read More

We’re going to show you the process of dealing with dividends on FreeAgent. We’re assuming simple one shareholder businesses here – your typical freelancer or contractor limited company. The first step is to make sure there are sufficient profits in your company to cover your dividend. Check your FreeAgent is up to date – raise… Read More

Question: “I am a management consultant trading through my own Limited Company. I am the only shareholder and director and I expect my salary and dividends for the 14-15 tax year to be about £55,000. My wife and I receive child benefit for our two children and I am concerned that my earnings will mean… Read More

As FreeAgent Friendly Accountants we have outlined below how the dividend process works in FreeAgent. Remember there are two key elements to consider when voting a dividend: 1 – Does the Company have sufficient distributable profits? 2 – Is there an impact on the personal tax of any of the shareholders? (we are assuming a… Read More