For most small business owners, the best take-home pay solution is a mixture of salary and dividend, whereby you take your tax-free personal allowance as salary and the rest of your income as a dividend. There are certain rules you have to abide by when calculating and taking dividends. Here we explain how dividends work.
The new tax year starts today and whilst we all have other matters on our mind, its worth noting the changes to the tax thresholds and new changes introduced, summarized below.
As the end of the current financial tax year is fast approaching, it’s a good idea to think about whether you have fully maximised the amount you can withdraw from the company, tax-free and at the basic rate of dividend tax.
Current Tax Year ended 5th April 2019 In the current tax year ended 5th April 2019, we general advise a salary of £702 per month, depending on your additional personal income to date. Not including additional income, […]
Dividends are usually a great, tax efficient way of withdrawing money from a company by the owners. A company can declare a dividend if it has sufficient profits available within the business. However, there are […]
As the end of the current financial tax year is fast approaching, it’s a good idea to think about whether you have fully maximised the amount you can withdraw from the company tax free and […]
All things come to an end eventually and contracting is no exception. Whether it was your decision or not, you might eventually decide to close down your company and move on to new projects. If […]
A limited company structure is usually the best way to legitimately and compliantly minimise your tax bill. This is because you can take remuneration through an efficient mix of salary and dividends and claim a […]