gross or net dividend for earnings

[Fairychild]

Hi All

I've found some conflicted information on the forum with regards to whether the nett or gross dividend I received as contractor from my limited company counts to my earnings. I assume nett dividend as the company paid the tax and not me. (I am applying for Tier 1 extension after HSMP of 2 years)

This is not good news though! I didn't consider this when structuring my monthly payments. If I paid myself a salary instead and paid more tax I would have 'earned' more but taken less home each month. Makes no logical sense at all if this is to proof that I earn enough.

Would appreciate anyone who can confirm that it is net dividend? Or give me great news and say that it is gross dividend.

Thanks!

[ChetanOjha]

Hi All

I've found some conflicted information on the forum with regards to whether the nett or gross dividend I received as contractor from my limited company counts to my earnings. I assume nett dividend as the company paid the tax and not me. (I am applying for Tier 1 extension after HSMP of 2 years)

This is not good news though! I didn't consider this when structuring my monthly payments. If I paid myself a salary instead and paid more tax I would have 'earned' more but taken less home each month. Makes no logical sense at all if this is to proof that I earn enough.

Would appreciate anyone who can confirm that it is net dividend? Or give me great news and say that it is gross dividend.

Thanks!

Check this link.

[Fairychild]

Thanks Chetanojha! I read that one before but if that is the final word on it then I am very happy! I was just worried that I am reading into it what I want to read...

[quote]
I am also confused but trying to get in touch with HO,and they also said gross so i believe i m wrong,but better get advice from seniors also.
[/quote]


[quote]
You guys made it all too complicated
you declare your gross for the HO
and your accountant gave you the gross amount of the dividend
and that is what you declare.
[/quote]

[ChetanOjha]

Thanks Chetanojha! I read that one before but if that is the final word on it then I am very happy! I was just worried that I am reading into it what I want to read...

I am also confused but trying to get in touch with HO,and they also said gross so i believe i m wrong,but better get advice from seniors also.

You guys made it all too complicated
you declare your gross for the HO
and your accountant gave you the gross amount of the dividend
and that is what you declare.

I think you can consider Gross dividends. As per the Guidance notes Page 25:

•a document produced by a person, business, or company as an official return to a tax authority, showing details of earnings on which tax has been paid or will be paid in a tax year. The document must have been approved, registered, or stamped by the tax authority (this is particularly relevant to some overseas tax systems, for example SARAL in India).

Since tax on dividends is paid by the company, you can consider gross dividends.

[ssoct98@hotmail.com]

I claim gross and get extension.