Category: Dividends Advice

Get clever about your dividends!

Did you know that as a UK taxpayer, you could potentially enjoy £2,000 of dividends tax-free per year?

Find out more about withdrawing profit reserves, closing your company and other tax advice relating to dividends extraction.

In need of some additional advice? Please don’t hesitate to contact us.

2020/21 dividends tax guide for directors and limited company owners

What are dividends and how are they taxed?

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.

Taking salary and dividends

UK Dividend tax rates and thresholds for 2020/21

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.

Taking salary and dividends

Taking salary and dividends before the end of this financial year

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.

Taking salary and dividends

Wages and personal allowance thresholds for April 2019.

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, […]

Illegal dividends – what they are and how to avoid them

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 […]

UK Dividend tax rates and thresholds for 2019/20

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 […]

An MVL can be a great option

How to close your company and extract the profits at 10%

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 […]

Top tax tips

13 Top Tax Tips

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 […]