PTC - Tax credit on dividends
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carla030698
Registered Posts: 112 Dedicated contributor 🦉
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:
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:
0
Comments
-
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 helpsRegards,
Burg0 -
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:0
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