Taking on a second job as a director

[asl1978]

I'm employed part-time on a PAYE basis. I earn around 43k basic and had a 5k bonus last year.
I've just taken on a part-time MD role where I have 10% of the companies shares and am entitled to 12k per annum... I haven't taken any payments yet.
My question is what is the most tax efficient way for me to take this 12k, should I claim it all as dividends (can I?) or some as wages and some as dividends?
Thanks in advance for any advice!

[asl1978]

Any help on this would be hugely appreciated
Many thanks

[AmanSood]

you can't really pick unfortunately given you are only a 10% shareholder. To get a dividend, the Company would need to pay out to all shareholders and has to be a genuine dividend which may be difficult. So for example, for the company to pay you £12k dividend for your 10% holding, the Company would have to pay out £108k to the other shareholders. This seems unlikely but if possible would be more tax efficient as you can get the first £5k tax free. Failing that your only option is to take it as income and this should be taxed via the payroll.

[asl1978]

Great - thanks for the advice!
One further question.... I am the sole director of the company, the 90% shareholder is just a shareholder.
So is there still no way of taking dividends or other payments as a director other than as a PAYE employee?
Thanks!

[AmanSood]

only shareholders can receive a dividend.. and as a director you are considered an employee so any income is subject to PAYE

[asl1978]

Ok thanks.
Someone told me that as a sole director limited company this is different.... but thanks for clarifying.
I guess it's PAYE all the way!