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Where Taxpayers and Advisers Meet

Minimum salary vs dividends ratio from one man company?

mike@harding-roberts
Posts:14
Joined:Wed Aug 06, 2008 2:18 pm

Postby mike@harding-roberts » Fri Mar 07, 2003 2:03 pm

Taking money out of my one-man company as dividends would mean paying less tax than taking it out as salary. But can I pay myself zero salary and take out all as dividends? Where can I find guidance on this?

demetris
Posts:95
Joined:Wed Aug 06, 2008 2:18 pm

Postby demetris » Fri Mar 07, 2003 3:08 pm

Yes, you can do pay yourself no salary and all in dividends so that you can save income tax and national insurance whilst paying beneficial corporation tax rates.

We have an article on our website on the subject of the tax savings that can be made by incorporating. We also deal with that in our FREE Special Report on How to Save TAx, which is written in plain language and which we send automatically to Subscribers to our series of FREE weekly newsletters on tax and other business matters.

You are welcome to check them out by loggin on to http://www.tax-accounting-london.info

Demetris Savva BA FCCA
constantinesavva@accamail.com


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