As a director of your small company you have complete autonomy over when and how you are paid. What do you need to consider before committing your company to a salary if cash is tight?
Published 17.10.2023
It can take some time before a new company has enough income to be able to afford to pay its directors. This can mean losing out on tax and NI advantages. But is there a way to achieve these without
the company having to actually pay you?
Published 21.09.2011
If you have control over the salary and dividends you receive from your company, this time of year is important for tax and NI planning. Especially this year if profits have been adversely affected
by the pandemic. What factors should you consider for maximum tax efficiency?
Published 09.03.2021
Your company’s financial year is ending soon and projections point to a reasonable profit. If you draw this as a dividend, you’ll pay higher rate tax, whereas your spouse would only pay at the basic
rate. Can you simply shift the income to them?
Published 26.11.2010
You’ve used your personal savings to fund a start-up. You expect it to take a year until it will be financially self-sufficient. You can’t see the point of taking a salary from the company until
then, but might you be losing tax and other advantages?
Published 20.04.2022
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
Dividends are usually the most tax-efficient way to take income from your company, but not always. In what situations should you think about taking salary or a bonus instead?
Published 20.03.2012
Salary sacrifice arrangements are a tried and tested way of reducing tax and NI. But if you’ve already optimised your salary for maximum tax efficiency are they still worthwhile or is there a better
alternative?
Published 14.05.2015
You’ve reached state pension age and so are no longer liable to NI on salary. To improve tax efficiency should you change how you take income from your company especially in view of the extra tax
payable on dividends from 6 April 2022?
Published 09.02.2022
You’re planning the remuneration package for the directors of two new subsidiaries of your company. What should you be considering to maximise tax and NI efficiency?
Published 26.06.2019