Here we outline the suggested combination of salary and dividends from your limited company to make best use of the tax rates and allowances.
If you are looking at taking alternative combinations of salary and dividends, additional tax and NI will be due.
Tax will be payable on all dividends in excess of £2k so you should ensure you make sufficient provision to pay this additional tax by making regular payments to HMRC throughout the year.
Details of how to make payments with HMRC are listed here
Posted by Kath Docherty
on January 19, 2018 / Posted in Cars
The current regime for taxing employer provided cars (commonly referred to as company cars) is intended:
- to encourage manufacturers to produce cars which are more environmentally friendly and
- to give employee drivers and their employers a tax incentive to choose more fuel-efficient and environmentally friendly vehicles.
We set out below the main areas of importance. Please do not hesitate to contact us if you require further information.
Regulations which took effect from 1 October 2011 mean that workers supplied to a company, or to any other entity, by an agency will become entitled to receive pay and basic working conditions equivalent to any directly employed employees after a 12 week qualifying period.
How can I extract funds through a limited company in the most tax efficient way ?
In this article we address one of the most common questions we receive from business owners – how do I pay myself and make sure I minimise the amount of tax and national insurance ?
The options outlined below incorporate the significant changes to the way that dividends are taxed and the restricted availability of the employment allowance which were introduced from 2016-17.