Accountancy question

[Murphman]

A director past state pension age pays himself £35000 in dividends with no salary to take into account.

Or a partner in a 3 way partnership pays himself £35000, he too is past state retirement age.

In scenario 1, Corporation tax @19% plus dividend tax @ 8% means £35000 attracts deductions of £9450

In scenario 2, Basic rate tax @ 20%, no NI to pay because of age means £35000 attracts deductions of £7000

Personal allowance taken up by state pension and additional earnings.

Is this correct, if not, what have I missed?

[Jonesy]

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[Tosh]

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Edited Wednesday at 07:14 by Tosh

[Murphman]

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[Bailo]

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[Jonesy]

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