Dividends vs Salary with Corp Tax at Marginal Rate

Dividends vs Salary with Corp Tax at Marginal Rate

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Directors have been taking salary of £500pm and dividends up to the top of the basic rate band through the financial year. The company is making profits which are well above £300k and the directors would like to take a lump sum before the year end.

Is it best to take this money out of the company through PAYE or dividends?
Anon

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By Richardrussell
12th Mar 2007 09:04

Do the maths
Bonus - PAYE, NI, E'ers NI, CT relief
Dividend - None of the above, income tax

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By AnonymousUser
12th Mar 2007 10:03

I'm thinking ...
of setting up one post for each of my clients to get advice on each of their specific circumstances for the whole of next year. It would take some investment in time but I could then take the rest of the year off and just await for responses. Even better, I could just send them all a personal link to AWEB and I wouldn't even have to talk to them!

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By Chris Smail
12th Mar 2007 11:08

Ask your accountant
Far too many unknowns to give quick answer.

If you don't have an accountant go to yellow pages and pick a FCA or FCCA

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