What Tax Do I Pay On Dividends?

Unicorn Accountants07 Mar, 2024Business

Companies pay dividends for several reasons, such as attracting and retaining investors. A dividend is a payment of profit from a limited company to its shareholders. This is the amount of money the business still has after it has covered all of its liabilities and operating costs, as well as any unpaid taxes (such as corporation tax and VAT). While dividends are a great way to generate a regular income, like any other income you earn, you have to pay tax on dividends. So, let's understand what dividends are and how they are taxed.