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Other way to withdraw money from Limited Company

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Well until this point of my accounting career I've had really 'simple' clients using director salary, dividend and costs reimbursment as a way to take out cash from the company. Today I have spoken with one of the potential clients and he mentioned that we actually can use three allowances: personal 12,500 starting rate allowance 5000 and personal saving allowance 1000 which is all together 18500 Is that really possible that director can take out 18500 without tax ? Can someone give me more details ? or directions where to search ? Thank you

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By atleastisoundknowledgable...
14th Oct 2019 21:16

Yes, £6k would be in interest, which assumes a healthy credit balance on the DLA. Also creates CT61 requirements.

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By Joe Alderson
15th Oct 2019 10:51

Yes, this is the starting rate savings allowance which allows a person to receive up to £5,000 of savings income at 0% tax and this is in addition to the savings allowance of £1,000 at basic rate of £500 at higher rate. The link paul.benny provided should help.

So in reality, if you make full use of this allowance you can earn up to £20,500 before paying any tax by using the Personal Allowance, Savings Allowance, Starting Rate Savings Allowance and Dividend Allowances. There are other ways this can be increased too.

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