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Dividend v Salary Calculator

Any views on the best dividend v salary calculator?

I have a prospective client who is a husband and wife trading company, so the calculator would have to allow for two salaries.

Thanks

Tim

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The back of a fag packet...

... was my preferred solution until I discovered spreadsheets.  Bloody clever things spreadsheets!

Best thing though at the moment is to pay them both salaries up to the secondary threshold (you can go up to the primary threshold and save a few quid if you're happy to ponce about paying the employer's NIC and they won't be higher rate), make a rental charge for the inevitable home office (probably shared between the spouses) and then pay them dividends to use up their basic rate band (or until the money's gone).  After that, unless they need more money, you need to play off the ER effect of accumulating cash in the company against paying tax on further dividends at 25%, then 37½% (in the effective 60% band), then 36.11%.

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21st Mar 2012 11:11

Thanks George

As a non-smoker I sometimes used small scraps of paper....

 

I am well aware of the savings but wish to present the possible client with some kind of report which quantifies them so that they have something tangible.

 

Tim

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By paulb
21st Mar 2012 11:28

Have a look at this link, sign up for free trial and use the tools section. Might be just what you need..I am in no way connected with them - just trying to help..

www.indicator.co.uk/tax/ 

 

 

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22nd Mar 2012 12:55

.

PTP do have one. About £100+VAT I think.

 

Have a look

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14th Nov 2012 16:06

better late than never...
The multi recipient version of our Salary v Dividends Calculator does just what you ask. It was new in April 2012, following customer requests.

You can use ours for up to three shareholders / employees, each taking any level of dividend or salary. It produces well presented reports for your clients.

Please see www.finansol.co.uk for more details.

Kind regards

Finansol Tax Calculators

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