[et_pb_section fb_built=”1″ _builder_version=”3.23.3″][et_pb_row _builder_version=”3.23.3″ module_alignment=”center”][et_pb_column type=”4_4″ _builder_version=”3.23.3″][et_pb_text admin_label=”Pubs and Advice” _builder_version=”3.23.3″ custom_padding=”8px|||||”]<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”3.23.3″][et_pb_column type=”4_4″ _builder_version=”3.23.3″][et_pb_toggle title=”Salary or dividend?” _builder_version=”3.23.3″ link_option_url_new_window=”on”]<\/p>\n
What\u2019s the most tax-eficient way to pay yourself in 2016\/17?<\/span><\/p>\n Owner-managers and contractors often pay themselves in a combination of salaries, bonuses and dividends.<\/p>\n A common strategy is to draw a salary of around \u00a38,000 while also extracting proits from the business as a dividend. A salary of \u00a38,060 (for the 2015\/16 tax year) preserves entitlement to the state pension and some beneits. It is also within the personal allowance and below the threshold for employer and employee national insurance contributions (NICs).<\/p>\n Some people opt for a higher salary to make better use of the personal allowance and, in doing so, help lower company proits which are liable for corporation tax. This option means that the individual will have to pay NICs on any salary exceeding \u00a38,060 and the business will have to pay employer NICs.<\/p>\n It is then possible to take additional income as a dividend which are generally more tax-eficient than salaries or bonuses alone. The amount of tax due on dividends depends on an individual\u2019s income tax band.<\/p>\n Read more…<\/strong><\/a><\/p>\n [\/et_pb_toggle][et_pb_toggle title=”Reducing company tax liability” _builder_version=”3.23.3″]This guide is intended to help you with your 2013\/14 company tax planning<\/p>\n Managing a company always presents challenges, whatever the economic climate. Currently, a seemingly recovering economy offers opportunity to some business owners whilst remaining challenging for many. While some corporate balance sheets are awash with cash, many small and medium sized businesses – including high street retailers – are finding cash flow a challenge, even some of those benefiting from a growing market share. Don\u2019t let tax be another problem this year. Stay ahead of developments and make sure you seek our professional advice. Here are some of the issues directors and company owners should know about tax in this financial year.<\/p>\n\n