Does this look right?

[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.

[D&C]

Not really sure exactly what you're asking as you are mixing up company and personal tax details.

If the tax year you are considering is 2016:17 then are the company accounts which end during the 2017:18 tax year relevant?

Secondly the tax amount relating to the dividends is completely wrong. You, or the calculator you've used seems to be working on the assumption that it is your husband who has got a salary of £11000 (quite possible) and a dividend of £13488 (again possible) and the tax due on that would be £546.67 but this is wrong.

The calculator appears to be working on the basis of your husband having personal allowances of 12200 which is impossible. The M in his code means he is the beneficiary of the Marriage Allowance which means you have given away 10% of your personal allowance. This does not mean your husband receives this allowance, instead he receives a reduction off his tax bill (in 2016:17) of £220 (assuming the tax due is £220 or more).

Lastly again you, or the calculator you are using, has a basic misunderstanding of how payments on account work. For personal tax (self assessment) payments on account are only applicable if the bill for the previous year was £1000 or more so if the bill for 2016:17 is only £546 then there wouldn't be payments on account due for 2017:18.

[Nicky321]

Thankyou for your reply

I used the calculator from http://www.employedandselfemployed.co.u ... calculator The company was only formed just over 12 months ago, so I am very new to this. I just want to try and get an understanding of how this works, everything seems so confusing. We do have an accountant that will sort it all. I did give my husband a small amount of my personal tax allowance, as in the marriage allowance.