hilaryjohnson
Joined: 01 Nov 2012
Posts: 23
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 Posted: Mon Nov 19, 2012 12:26 pm Post subject: What is a dividend tax credit? |
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The taxman considers that basic rate taxpayers have already paid tax of 10% on the dividend, via corporation tax paid by their limited company, and have no more tax to pay. All contractor dividends are paid after the contractor limited company has already paid corporation tax at 21% on the profits, to avoid paying tax twice (‘double taxation’), dividend payments carry a ‘tax credit’.
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Long Island Personal Injury Lawyer | IR35 |
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