Salary versus Dividends

& Other Tax Efficient Profit Extraction Strategies

By Dr Nick Braun PhD

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

The 18th edition was published in February 2018 and is completely up to date for the 2018/19 tax year (no tax changes were announced in the March 2018 "Spring Statement"). It also contains new chapters and sections featuring new tax saving ideas.

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 slash your tax bill further by paying yourself rent and interest and using directors' loans, company pension contributions and other powerful profit extraction strategies.

Tax Tip
Company owners can enjoy massive 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 avoid paying too much tax each year.

What Information is Contained in the Guide?

Subjects covered include:

• All tax changes announced in the November 2017 Budget and all earlier Budgets.
• Details of future tax changes coming in 2019/20 and later tax years.
• A plain English guide to how companies are taxed.
• A plain English guide to how dividends are now taxed with lots of examples.
• How to reduce ALL the taxes paid by company owners: income tax, national insurance, corporation tax and capital gains tax.
• How to choose the best mix of salary and dividends for YOU.
• How couples in business can extract £27,700 TAX FREE this year.
• How to make the most of the new 7.5% dividend tax rate and avoid paying 32.5%.
• How couples can extract £92,700 and pay just 5.26% tax overall.
• How to benefit from the £3,000 national insurance employment allowance.
• Why older directors can enjoy a salary of around £29,000 with no national insurance.
• The new marriage allowance and why company owners can benefit.
• How company owners with children can avoid the child benefit tax charge.
• ... thereby safeguarding tax-free child benefit of up to £21,000 per child!
• How to save up to £12,626 in tax per year by gifting shares to your family.
• Traps to avoid when gifting shares to family members who are also employees.
• How to pay tax-free salaries to family members (including minor children).
• How Scottish company owners can completely shield themselves from higher taxes.

• How company owners can reduce their tax by accelerating or deferring income.
• The extortionate income tax rates that apply to some dividends (eg 58%) and how you can avoid them.
• Why most company owners now have to make payments on account.
• Loans to directors - how they can be used to defer tax for an extra two years and sometimes to avoid tax altogether.
• How the new 'bed and breakfasting' rules affect how often you can take a tax-free loan from your company.
• How to enjoy Entrepreneurs Relief (10% tax) when you sell/wind up your company.
• New rules that seek to tax capital distributions as dividends, with tax of up to 38.1%.
• How to sell your company TAX FREE to an employee ownership trust... with full blessing from the Government.
• Pension contributions - When you should make them; when your company should.
• Why company pension contributions are better than dividends.
• How to increase your retirement income by over 10% with a Lifetime ISA.
• The benefits and drawbacks of putting commercial property into a pension.
• Rental income - Why rent is now better than dividends in many cases.
• Interest income - How company owners can pay themselves up to £6,000 tax-free.
• How to save tax by using your personal allowance for your dividends instead of your interest income.
• Company cars and vans - a plain English guide to the tax rules.
• Charity - Who should donate: you or the company?
• How to get your company to pay for your smart phone.

• Tax saving strategies for company owners with income from other sources (e.g. rental income or other business income).
• How company owners who are also landlords can protect themselves from the new restrictions to mortgage interest tax relief.
• How to protect your personal allowance and save an extra £3,240 in tax if you have income over £100,000.
• Tax saving strategies for additional-rate taxpayers with income over £150,000.
• Why many additional-rate taxpayers would be better off without a company.
• How to make sure the new national living wage doesn't affect you.
• How to protect your state pension entitlement.
• How to declare dividends properly and avoid an HMRC challenge.
• Traps for personal service companies.
• How company owners, by altering their dividends, can save up to £3,450 in capital gains tax when they sell properties and other assets in 2018/19.
• 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

 

What Will I Receive?