PTC - Tax credit on dividends

carla030698

Hi,

I am doing the homestudy course with BPP for PTC and dont understand when to calculate the tax credit on dividend income, can anyone help???? :confused1:

burg

The dividend income needs to go into the tax computation as gross.

Often you will be given the amount as received.

You will then need to gross it up by /90 x 100

Gross dividend - net dividend = tax credit

This can then be offset against the tax calculated as due, in the same way as tax deducted through PAYE and bank interest received.

Example

Dividend received £90

So £90/90 x 100 = £100

Tax credit = £100 - £90 = £10

Hope this helps

carla030698

Thats great thanks! It seems easy now I know how!
Maybe it was all the numbers and the chattering of the family in the background getting all too much! The joys of homestudy! :laugh: