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Why not take your compensation as salary rather than dividends? You'll be paying the top rate of 45%. Am I missing something?
by ectopod 6y ago
Why not take your compensation as salary rather than dividends? You'll be paying the top rate of 45%. Am I missing something?
- tax123 6y agoBecause it is my copporation, I would also have to pay the employer and employee NI contributions, and therefore dividends have always been the most tax efficient way for UK business owners to extract their profits. That said with these new corporation tax hikes, it's approximately the same now (dependent on the amount £££).
- ectopod 6y agoCheers. I thought NI was capped at a fairly low level so I ignored it, but it turns out that employer's NI is not.