PUBLICATION DATE:  NOV 2022
PAGES: 290
EDITION:  23rd
ISBN:  9781911020790
STATUS:  IN STOCK

Salary versus Dividends

& Other Tax Efficient Profit Extraction Strategies

By Nick Braun PhD and Carl Bayley FCA

Salary versus Dividends is essential reading for ALL company owners and directors.

The 23rd edition was published in November 2022 and contains all the tax changes announced in the November 2022 Autumn Statement.

Written in plain English with dozens of examples, this unique guide shows you how to save thousands of pounds in tax every year by choosing the best mix of salary and dividends.

It also shows you how to reduce your tax bill further by paying yourself rent and interest and using directors' loans, company pension contributions and other powerful profit extraction strategies.

Company owners can enjoy additional tax savings by 'smoothing' their income or varying it from year to year ('roller-coaster income'). This guide shows you how to use these strategies to reduce your tax bill.

What Other Information is Contained in the Guide?

Subjects covered include:

• All tax changes announced in the November 2022 Autumn Statement and previous Budgets.
• A plain English guide to how companies are taxed... and the new corporation tax rules applying from April 2023.
• How to reduce ALL the taxes you face as a company owner: income tax, national insurance, corporation tax and CGT.
• How to choose the best mix of salary and dividends for YOU.
• How couples in business can extract £29,140 tax free this year, or £100,540 with a total tax bill of just £6,248.
• How to make the most of the 8.75% dividend tax rate and avoid paying 33.75% tax.
• Why older directors can enjoy a salary of around £43,500 with no national insurance payable.
• Why paying your salary monthly or as a lump sum can affect the corporation tax relief enjoyed by your company.
• How company owners can avoid the child benefit charge.
• How much tax you can save by gifting shares to your family.
• How to pay tax-free salaries to family members (including minor children).
• How Scottish company owners can completely shield themselves from higher taxes.
• Tax planning for those with income over £100,000 (where the personal allowance is withdrawn).
• How to plan for next year's reduction in the additional rate threshold from £150,000 to £125,140.
• Fully updated information on the best alternative profit extraction techniques, including:
• Loans to directors - In one example a director saves over £35,000 by taking a loan from their company instead of dividends
• Rental income - More tax efficient than salaries or dividends in many cases
• Interest income - How company owners can pay themselves up to £6,000 tax-free
• Pension contributions - You could end up paying just 15% tax compared with the 51% overall tax rate on dividend income.
• Charitable donations - How to benefit your favourite charity by more than £3 for every £1 you give
• Capital Gains - How to pay 10% tax when you sell or wind up your company or 0% with an employee ownership trust
• How to declare dividends properly and avoid higher-risk tax planning (dividend waivers, alphabet shares etc).
• How company owners, by altering their dividends, can save up to £3,770 in capital gains tax when they sell assets like property.
• How to eliminate your income tax bill by investing in venture capital trusts (VCTs).
• How to completely avoid tax by emigrating.

Click here to read the full contents listing and first chapter of the book

About the Authors

Carl Bayley BSc FCA began his career as a chartered accountant over 40 years ago and is now one of the country’s most respected tax experts. He was Chairman of the Tax Faculty at the Institute of Chartered Accountants in England and Wales (ICAEW) from 2015 to 2018 and served as a member of the institute's governing council between 2003 and 2023.

Nick Braun PhD is Taxcafe's Managing Director and has been involved in the tax publishing world since 1989 as a writer, editor and publisher.

 

Free Bonus Tax Guide: How to Save Tax 2023/24

When you order this guide you will also receive a FREE e-book copy of How to Save Tax 2023.

This comprehensive tax guide contains over 150 pages of tax saving tips. Updated following the March 2023/24 Budget, it contains all the latest tax changes and is essential reading for all salary earners, business owners, landlords and retirees - anyone who wants responsible, tried and tested tax planning information.

Please click here for more information on this excellent bonus e-book.

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