The Federal Tax Credits Blog

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Question: Help on UK dividends tax credit?

I’ve been running my own limited company and have recently filed my accounts with companies house and IR with success (I prepared them myself).

My Company paid me dividends over the year, but now the company needs to issue me a dividend voucher. I’m trying to work out the tax credit etc.

When the company paid me the dividends, it never deducted tax from the payments.

Lets say after Profit after tax, the company has paid me in total £20,000 dividends. This would be the amount received which should be 90% of the dividend income.

Therefore the tax credit would be £2,222.22 and the total div income would be £22,222.22. Is this right even though when the company made the dividend payments it didn’t deduct any tax from the dividends?

Any urgent guidance is much appreciated.

Thanks

Answer: Your understanding is exactly right.

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