Giles Mooney and Tim Good discuss two Any Answers posts on whether you have to pay a small salary and how capital gains tax impacts on the calculation.
Kicking off a new ‘Any Answers Answered’ video series on AccountingWEB, the TAXtv hosts cast some light on tax-related queries raised online every month.
This month the first question came from A E Scott who asked a question which was fundamentally about setting up a business and whether they had to pay a small salary.
Mooney said that while we’re so used to paying small salary and high dividend, there may be some situations where you don’t actually want to pay a small salary.
The question is: Do you have to pay a small salary?
This leads onto another question posted by girlofwight who asked how capital gains tax would impact on the calculation, either 18% or 28%, and how that fits into the overall computation.
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Watch the video below to find out more.
For the latest episode of TAXtv visit PTP Interactive. TAXtv is a monthly tax update programme available as an annual subscription from £199, (11 issues plus special editions) to view online, download from the internet or watch on DVD.
About Robert Lovell
Business and finance journalist