A limited company is going to pay a 10,000 Dividend to its one and only shareholder. The dividend meets all the legal requirements etc.
The dividend would attract a 10% tax credit being £1,111.11.
I have the following questions
1. Is the 10% tax credit actually paid over to HMRC, or is it only used as a notional figure to reflect the fact the dividend has been paid out of post tax profits?
2. Is the full dividend of £10,000 paid over to the shareholder?
3. In the companies accounts the £10,000 would be the figure recorded as the dividend payment?
Many thanks for your help