PAGES: 293
EDITION: 21st
ISBN: 9781911020530
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 21st edition has just been published (April 2020) 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 slash 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.
The latest edition of Salary versus Dividends contains a brand new section to help company owners cope with the coronavirus crisis. Subjects covered include:
- Whether company directors can be furloughed under the Job Retention Scheme
- Possible future tax increases that may affect company owners
- How the coronavirus crisis affects dividend tax planning
- Why some company owners should take as much dividend income as possible this year
- How some company owners can take a smaller dividend this year and bigger one next year
- ... and still pay less tax overall!
- The importance of having sufficient distributable profits before declaring dividends
- Why some company owners should consider postponing pension contributions
- How company owners can borrow from their companies with very little tax cost
- How to receive tax-free interest when you lend money to your company
- Employing children and paying them tax-free salaries while they're off school/university
What Information is Contained in the Guide?
Subjects covered include:
- All tax changes announced in the March 2020 Budget.
- Details of future tax changes.
- 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 £29,000 TAX FREE this year.
- How to make the most of the 7.5% dividend tax rate and avoid paying 32.5%.
- How couples can extract £94,674 and pay just 5.6% tax overall.
- How to benefit from the £4,000 national insurance employment allowance.
- Why older directors can enjoy a salary of up to £37,770 with no national insurance.
- The marriage allowance and why company owners can benefit from it.
- How company owners with children can avoid the child benefit tax charge.
- ... thereby safeguarding tax-free child benefit of up to £21,892 per child!
- How to save up to £13,587 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.
- Loans to directors - how they can be used to defer tax for an extra two years and sometimes to avoid tax altogether.
- How the '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.
- 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 £5,250 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 £3,750 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 20 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 2020/21
When you order this guide you will also receive a FREE copy of How to Save Tax 2020/21.
This comprehensive tax guide contains 173 pages of tax saving tips. It is completely up to date with all the latest tax changes announced in the March 2020 Budget 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 ebook.
What Will I Receive?
- Printed Book Orders - 293 page professionally printed book plus FREE PDF copy (immediate download)
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- 100% Money Back Guarantee - Full refund if you are not entirely happy with your purchase
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