April 2017

Directors' Salary vs Dividends: it's a fine balancing act

Directors-salary-vs-dividends-balancing-act

What's the best way to take money out of your company during the tax year 2017/18? Not surprisingly, there's a lot to consider and the calculations can be complicated. You also need to factor in the dividend allowance, introduced for the first time on 6 April 2016. From now on you are likely to pay tax if you use up all your personal allowance and take over £5,000 in dividends. This blog gives you an overview of the directors' salary vs dividends balancing act.