Dividends vs Salary - Are Dividends Still The Low Tax Option
March 4th 2010 2:01 pm
The examples below explore the tax efficiency of the different ways in which it may be possible to extract profits from your ...
March 4th 2010 2:01 pm
The examples below explore the tax efficiency of the different ways in which it may be possible to extract profits from your ...
£200,000.00 Gross Company Profit before taking Salary |
£6,475.00 Personal Tax Free Allowance |
£124.80 paid as Weekly Self-Employed National Insurance Contribution |
£4,614.05 paid as Class 4 National Insurance (Self-Employed NI) |
£69,930.00 paid as Income Tax |
£125,331.15 Net Income from £200,000.00 Company Profits |
£74,668.85 Total Taxation |
£22,045.96 paid as Employers National Insurance |
£177,954.04 New Profit figure (This will be the directors salary, as Employers NI is now paid) |
£6,475.00 Personal Tax Free Allowance |
£5,539.14 paid as Class 1 National Insurance (Employed NI) |
£61,111.62 paid as Income Tax |
£111,303.29 Net Income from £177,954.04 New Company Profits |
£88,696.72 Total Taxation considering Employers NI of £22,045.96 |
£200,000.00 Gross Profit before taking a Basic Salary from it (Up to your tax free allowance) |
£6,475.00 Salary taken from Gross Profit |
£96.64 Employers NI taken from Gross Profit |
£83.05 paid as Class 1 National Insurance Contributions on the Basic Salary (Employees NI) |
£193,428.36 new Gross Profit declared |
£40,619.96 Corporation Tax on Gross Company Profit |
£152,808.40 Net Company Profit |
£29,787.10 tax on £152,808.40 NET Dividend |
£129,413.25 Total Take Home Pay from £200,000.00 Company Profits after all tax deductions |
£70,586.75 Total Taxation |
£200,000.00 Gross Company Profit before taking Salary |
£0.00 Personal Tax Free Allowance |
£124.80 paid as Weekly Self-Employed National Insurance Contribution |
£4,614.05 paid as Class 4 National Insurance (Self-Employed NI) |
£77,520.00 paid as Income Tax |
£117,741.15 Net Income from £200,000.00 Company Profits |
£82,258.85 Total Taxation |
£22,045.96 paid as Employers National Insurance |
£177,954.04 New Profit figure (This will be the directors salary, as Employers NI is now paid) |
£0.00 Personal Tax Free Allowance |
£5,539.14 paid as Class 1 National Insurance (Employed NI) |
£66,497.02 paid as Income Tax |
£105,917.88 Net Income from £177,954.04 New Company Profits |
£94,082.12 Total Taxation considering Employers NI of £22,045.96 |
£200,000.00 Gross Profit before taking a Basic Salary from it (Up to your tax free allowance) |
£0.00 Salary taken from Gross Profit |
£0.00 only taken as salary due to reduction in tax free allowances (Overall Gross Income in 2010/2011) |
£0.00 Employers NI taken from Gross Profit |
£0.00 paid as Class 1 National Insurance Contributions on the Basic Salary (Employees NI) |
£200,000.00 new Gross Profit declared |
£42,000.00 Corporation Tax on Gross Company Profit |
£158,000.00 Net Company Profit |
£33,640.56 tax on £158,000.00 NET Dividend |
£124,359.44 Total Take Home Pay from £200,000.00 Company Profits after all tax deductions |
£75,640.56 Total Taxation |
Latest Tax and Business News Has Now Moved...
September 2nd 2016
November 11th 2009
New App For Small Business Tax Planning
May 12th 2013
Tax Calculator For Multiple Income Sources
February 2nd 2011
May 30th 2013
what type of accounting work do you need help with? choose below.