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Where Taxpayers and Advisers Meet

increase salary - or pension contribution.

jase@xmsg.com
Posts: 5
Joined: Wed Aug 06, 2008 3:10 pm

Postby jase@xmsg.com » Tue Jun 01, 2004 3:12 pm

I am a director of a small company (two directors). I currently receive an income of 10k gross which I would like to increase to about 11-12k

Would it be more tax efficient to increase my salary (currently on PAYE) or increase my income by a payment from the company to my pension fund?

Ian McTernan CTA
Posts: 1232
Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford
Contact:

Postby Ian McTernan CTA » Sat Jun 05, 2004 3:35 am

Actually, it would be more tax efficient to reduce your salary, set up a directors pension scheme and pay more out in dividends.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com

jase@xmsg.com
Posts: 5
Joined: Wed Aug 06, 2008 3:10 pm

Postby jase@xmsg.com » Sat Jun 05, 2004 5:52 am

I can see your point, however I am a director and not a shareholder - I would therefore not benefit from a dividend?


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