Pay yourself in the best way
When considering the best way to pay yourself you’ll have two main options, either through salary or dividends. You want to make sure you start a solid foundation for your future but sometimes it can be a bit overwhelming and confusing to think about.
Our team can talk you through your options to make sure you’re making the most out of your hard work and planning for your retirement.
When choosing a salary, you build towards your state pension and can make higher contributions to your retirement, even if your business isn’t turning over a huge profit. With that being said, salaries attract a higher tax charge as well as National Insurance contributions (NICs).
If you’re a shareholder, you may be able to choose to pay yourself through a mix of salary and dividends, which proves to be more tax efficient.
A dividend is a share of the company’s profits after tax, but it can only be declared from retained profits so relying on dividend income can be uncertain for owners and managers. When a dividend is paid out after the profits are taxed, it is likely to have a lower level of income tax than that of a salary.
If you still have questions about how best to plan your remuneration then our team can help.
Finding you the best results
Get in touch with us today, to find out how we can help you achieve your goals.
“The payroll team at Bennett Brooks are always polite, friendly, and efficient. Our monthly payroll is handled by Gemma in a very professional and timely manner. Personal communication is excellent whether it be by email or phone. Thank you bennettbrooks.”
Find out how else we can help.