income tax on dividends

[peterthecool]

HI, I am a director of a ltd company.
I am going to draw out £2000 in dividends before the end of this 2019/2020 tax year (I have not drawn any out this year). End of the tax year is April5 th. After this date, in the new 2020/21 tax year, can i immediately draw out another £2000 again (basically a day or two later from my last dividend). and will i pay tax on both these dividend incomes having drawn them out so close together? (need the money for some building work!)

[robbob]

HI, I am a director of a ltd company.
I am going to draw out £2000 in dividends before the end of this 2019/2020 tax year (I have not drawn any out this year). End of the tax year is April5 th. After this date, in the new 2020/21 tax year, can i immediately draw out another £2000 again (basically a day or two later from my last dividend). and will i pay tax on both these dividend incomes having drawn them out so close together? (need the money for some building work!)

As long as the business has sufficient "retained profit" then you can voted dividends as suit so nothing stopping you taking one 5/4/20 and the next 6/4/20 and each dividend will be taxed in different years. If thats your only dividend in those tax years the £2,000 will be charged at the 0% rate, albeit you could in theory still have tax to pay if your income is in one of the quirky extra marginal tax payable zones where any adidtional icnome hurts(eg 50-60k if you have child benefit tax charge - or 100-120k in which case loss of personal allowance would create tax even though the dividend is taxed at 0% - strange but true)