PAGES: 291
EDITION: 22nd
ISBN: 9781911020653
STATUS: IN STOCK
Salary versus Dividends
& Other Tax Efficient Profit Extraction Strategies
Salary versus Dividends is essential reading for ALL company owners and directors.
The 22nd edition has just been published (June 2021) and is completely up to date.
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 avoid paying too much tax each year.
As always, the latest edition of Salary versus Dividends has been fully updated and shows you how to save tax when you take money out of your company during the current 2021/22 tax year.
This year’s edition also contains full details of the corporation tax increase and new company tax rules announced in the March 2021 Budget:
- From April 2023 there will be three corporation tax rates: 19% (profits £50,000 or less), 26.5% (profits between £50,000 and £250,000) and 25% (profits over £250,000).
- Higher corporation tax will make dividends more expensive. For many higher-rate taxpayers the combined tax rate (corporation tax and income tax) on dividend income will rise to 50.4%.
- Higher corporation tax will make salaries, rental income, interest and other payments that enjoy corporation tax relief even more attractive than they are at present.
- All of these tax planning opportunities are covered in the latest edition.
- We also examine whether company owners should postpone certain types of spending, for example company pension contributions, so that more more tax relief can be enjoyed after the increase.
What Other Information is Contained in the Guide?
Subjects covered include:
- All tax changes announced in the March 2021 Budget ... and all future tax changes affecting company owners.
- A plain English guide to how companies are taxed... and the new tax regime applying from April 2023.
- 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 £29,140 TAX FREE this year.
- How to make the most of the 7.5% dividend tax rate and avoid paying 32.5% tax.
- How couples can extract £100,540 and pay just £5,356 in tax overall.
- Why older directors can enjoy a salary of up to £37,825 with no national insurance.
- How company owners can avoid the child benefit charge and safeguard up to £22,000 per child.
- How to save over £10,000 in tax per year 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.
- How to protect your personal allowance and save an extra £5,219 in tax if you have income over £100,000.
- Tax saving strategies for additional-rate taxpayers with income over £150,000.
- Fully updated information on the best alternative profit extraction techniques, including:
- Loans to directors - how they can be used to defer tax for an extra two years and sometimes to avoid tax altogether
- 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
- Company pension contributions - Why they're better than dividends (allowing you to pay tax at 15% instead of 50% in future).
- Company cars and vans - a plain English guide to the tax rules
- Charitable donations - Who should donate: you or the company?
- Capital Gains - How to pay 10% tax when you sell or wind up your company; How to pay 0% tax 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 Author
Dr Nick Braun founded Taxcafe in 1999. Over the past 21 years the company has become one of the UK's best-known tax publishers and has won several prestigious business awards. Nick has been a specialist tax writer since 1989, first in South Africa where he edited the monthly Tax Breaks publication, and since 1999 in the UK, where he has authored several tax books. Nick also has a PhD in economics from the University of Glasgow, where he was awarded the prestigious William Glen scholarship and later became a Research Fellow.
Free Bonus Tax Guide - How to Save Tax 2022/23
When you order this guide you will also receive a FREE copy of How to Save Tax 2022/23.
This comprehensive tax guide contains 150 pages of tax saving tips. It is completely up to date with all the latest tax changes announced in the March 2022 Spring Statement and all previous Budgets - essential reading for anyone who wants responsible, tried and tested tax planning ideas.
Please click here for more information on this excellent bonus e-book.
What Will I Receive?
- Printed Book Orders - 291 page professionally printed book plus FREE PDF copy (immediate download)
- eBook Orders - 291 page PDF book (immediate download)
- All Orders - A FREE copy of our bonus guide How to Save Tax (immediate download)
- 100% Money Back Guarantee - Full refund if you are not entirely happy with your purchase
- Free Postage - Printed books are posted same day. Postage currently to UK only.
