For many years, the standard way for a business owner to receive remuneration from their company is a mixture of a small salary and dividends. Provided that the balance is right, it is possible for a business owner to substantially reduce the tax and NICs due on their income.
However, it is important that other options are also considered to ensure that funds are extracted from the company in the most tax-efficient way, such as:
- Interest on a director’s loan account
- Letting property to the company
- Pension contributions
- Restructuring of the shareholding to involve spouses and/or other family members
- Trivial benefits
PD Tax can work with you to consider your options for remuneration for each year, and help identify any tax planning opportunities going forward in light of your personal and professional goals.