Dividende or PAYE

[alain]

I am on 60000 gross salary but my situation change since 2 month because i am now shareholder of 60% of my company. Can somebody let me know the best way to cut my tax but still have my monthly salary net 3500.

regards

alain

[deanshepherd]

A combination of salary and dividends is usually the most tax efficient way of withdrawing funds from a company.

However, you say you are only recently a 60% shareholder.

Who are the other shareholders?

If you have control of the company then you can decide whether to extract dividends or salary. Obviosuly the other shareholders are entitled to their share of any dividend declared.


Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk

[alain]

they 3 other shareholder 2 at 10% and 1 at 20%, what i would like it's to minimise my tax because had the moment i paye around 45% tax.

can someone give a sample for save some tax, the other shareholder work also in the company

regards

alain

[deanshepherd]

If you were to withdraw a salary equal to your personal allowance (currently £4,895) and take the remainder in the form of dividends then you would pay much less tax (and no national insurance).

The company would pay more corporation tax but it would also avoid employers national insurance on your salary.

The other shareholders salaries could be adjusted to reflect the dividend payments as well.

I suggest you seek professional advice - try using the 'Find a professional' link to the right.


Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk