3 ms·
> you pay tax as everyone else > whether it is dividends or salary Dividends won't incur NI thus significantly reducing the tax impact.
by Nextgrid 4y ago
> you pay tax as everyone else
> whether it is dividends or salary
Dividends won't incur NI thus significantly reducing the tax impact.
- Lio 4y agoThat might be true but they still attract capital gains tax and corporation tax. Then there's all the other expenses of running a business such as accountancy fees, public liability and on going indemnity insurance premiums and business banking fees that an employee won't have to pay on their salary.
- youngtaff 4y agoDividends incur dividend tax which means between corporation tax, and income tax the contractor will pay roughly the same as someone on PAYE + NI What dividends escape is Employers NI and that's where contractors make a gain Coupled with the ability to have a spouse as a director or shareholder and so income split with them