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Taxation of dividends in 2023/24

taxation of dividends 2023/24

If you have a personal or family company, taking dividends is a popular and tax-efficient way to extract profits. However, while they remain tax efficient, recent tax changes have eroded some of the advantages. What do you need to know when planning your dividend extraction strategy for 2023/24? Impact of corporation tax changes From 1 … Read more

Take advantage of the dividend allowance

Family business

Where a business is operated as a family company, it is necessary to extract the profits from the company in order to use them outside the company for personal use, such as to meet living expenses. Extracting profits may trigger further tax and National Insurance liabilities, and when formulating a strategy, it is advisable to … Read more

Take dividends while you can

take dividends while you can

For personal and family companies, a tax efficient strategy for extracting profits is to take a small salary and to extract any further funds needed outside the company in the form of dividends. However, while there are no restrictions on taking a salary if the company is making a loss, the same is not true … Read more

No retained profits – Can you extract cash to cover your living expenses?

No retained profits?

If you operate through a limited company, for example as a personal or family company, you will need to extract funds from your company in order to use them to meet your personal bills. There are various ways of doing this. However, a popular and tax efficient strategy is to take a small salary which … Read more

Salary vs Dividends

Salary vs Dividends

Salary vs Dividends – A popular profits extraction strategy for personal and family companies is to extract a small salary, taking further profits as dividends. ¬†Where this strategy is pursued for 2019/20, what level should be the salary be set at to ensure the strategy remains tax efficient? As well as being tax effective, taking … Read more