There are ways in which you, as a business owner, can ensure you receive remuneration from your company business in a tax efficient way.
This can be by way of a salary or a dividend, or by a variation of both.
But be careful, because the generally well-known recommendation of a low salary and dividends doesn’t always apply to all companies and directors. Other factors should be taken into account such as:
All of this is worth a conversation – don’t hesitate to get in touch with Amanda for a brief review of your situation and how this can be improved.
Contact Amanda here….
She can determine the most tax efficient remuneration plan for you and your business.
CLIENT CASE
In addition to the remuneration from his company, Keith has had rental income for a number of years.
The rental property has a mortgage on it, and so the rules of gaining tax relief on the mortgage interest need to be considered if all of the loan interest was to be allowed as a tax credit relief.
Amanda regularly makes a review of Keith’s overall incomes, tax allowances and the loan interest paid on the rental property. She then created the most tax efficient version of salary and dividends with the maximum amount of loan interest relief achieved.
