Where a business is operated through a limited company (such as a personal or family company), to enjoy and use any profits personally, those profits must first be extracted from the company.
When it comes to tax, all extraction methods are not equal. Also, as the tax landscape shifts, what worked well last year will not necessarily be the optimal strategy this year.
In our monthly Business Tax Insider newsletters, Sarah Bradford explores whether, for 2017/18, it is better to extract profits from a personal or
family company as salary or dividends, or both.
This is probably one of the most, if not the most, important tax strategies to get right for individuals!
As part of our 'three-free-issue' Tax Insider trial, you'll get this incredibly popular strategy plus 11 more delivered to your doorstep.
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>> Dividends vs Salary In 2017/18 Explained