If you trade through a limited company, it is fairly likely that you will need to take money out of the company for your own personal use. However, the methods for doing this can be confusing, and is almost always discussed when I have meetings with directors of new limited companies. In addition to salaries, …
The Summer Budget included an announcement a new dividend tax, effectively changing the way that dividend income is taxed. The Current System Dividend income is paid from post tax profits (also known as retained reserves). At the moment, there is no extra tax to pay on dividends if you are a basic rate taxpayer (i.e. 20%). …
Many small businesses trade as limited companies, and an efficient way of taking money from the company is to be paid part salary, part dividend. The salary bit is pretty straight forward, so what about the dividend? A dividend is a reward paid to shareholders for investing in shares in a company. It is the …