Taking benefits in kind instead of salary can save you tax and your company NI. To get the best outcome you need to tailor the arrangement to fit your financial circumstances. But is this type of
scheme always tax efficient?
Published 02.05.2014
We now know the NI limits for the next tax year as well as the tax-free allowances and rate bands. If you want to set your salary for optimum tax efficiency what figure should you be aiming at?
Published 04.02.2014
As a general rule, dividends are the most tax efficient way to get income out of your company. But these can only be paid where you’re making a profit. So what will the Taxman say if you pay
dividends from a loss-making company?
Published 29.11.2012
It’s the season of goodwill for 2006 so why not extend this to yourself, by taking an extra bonus or dividend? But which is best - is it always the case that one method is more tax-effective than the
other?
Published 07.12.2006
Dividends are generally the most tax-efficient form of income you can take from your company but they can only be paid out of profits. Despite this, might there be a way for your loss-making company
to pay you a dividend?
Published 17.04.2024
The Chancellor’s first Autumn Budget included an uplift in tax-free personal allowances and NI limits from 6 April 2018. What effect will they have on your tax bill and how should you plan to use
these increased allowances?
Published 08.12.2017
Sound advice for SMEs is for a director/shareholder to take enough salary to cover their tax-free personal allowance and extract any further cash needed as dividends. But should you pay pension
contributions out of this?
Published 08.12.2005
Coronavirus has played havoc with dividends as a profit extraction method for owner managers of some companies and may have put them at a tax disadvantage for some time to come. How might a similar
situation be avoided in future?
Published 01.06.2021
The accounts for your company’s recently ended financial year are being finalised by your accountant. You expect them to show a loss. Does this mean you should stop taking dividends to avoid trouble
with HMRC?
Published 07.05.2021
When you started your company you took a small salary plus dividends. Your accountant now says because the company’s profits weren’t sufficient some of them were illegal and you might have to pay tax
on them. Is he correct?
Published 16.05.2017