Richard Moody

Morning We are wanting to pay a director a dividend in respect of profits earned in 23/24 tax Year Question 1 - how do we make the dividend payment in the Basic PAYE Tools software (the director is also an employee)? We can't see a section in the "Add employee payment" part of the software to make the dividend payment. Question 2 - as this relates to tax year 23/24 - is their dividend allowance £1,000 or, since it will be paid in 24/25 tax year, is it £500 Question 3 - The Director, in tax year 23/24, earned significantly less than the Basic rate level and used their full tax free allowance. If the answer to Q2 is allowance = £1000, would a £10k dividend payment be calculated as Dividend = £10,000 Tax to be paid on = £9,000 at 8.75% = £787.50 Payment = £10,000 - £787.50 = £9,212.50 If the answer to Q2 is allowance = £500, would the calculation be Dividend = £10,000 Tax to be paid on = £9,500 at 8.75% = £831.25 Payment = £10,000 - £787.50 = £9,168.75 Thankyou