The best way to get money our your company and the first £2,000 is tax-free!
Via your DLA, we can manage your tax efficiency and ensure you only pay what you are due to in tax.
What are Dividends
Dividends are how shareholders/Directors of their own business take their money out.
Dividends are payable after tax on your profit, so if you made £100k after-tax,£81k is available to take as a dividend after tax.
As a Limited company, you do not need to take it all out, thus saving you money in tax and giving you control of when you take your money out, a vital advantage of a Limited company.
Dividends are paid After paying Corporation Tax
E.g., You Make £100,000 in profit
Corporation Tax is £19,000
leaving £81,000 available for Dividends
Your first £2,000 of your dividends are tax-free
The next £48,000 are taxed @ 8.75%, £4,200
Dividends that are taken out above £50,000 you pay 33.75%
The benefit of Dividends is you can take them in the Tax year of your choice
Take £100,000 in one tax year, pay - £21,075 in tax
Spread it over 2 Tax years pay £8,400