Salary versus Dividends & Other Tax Efficient Profit Extraction Strategies 2020/21 (Paperback)
Publication date: April 2020 - Plain English guide with dozens of examples and tax planning tips.
Now in its 21st edition, Salary versus Dividends is essential reading for ALL company owners and directors.
It tells you everything you need to know about paying yourself the most tax efficient mix of salary and dividends.
This year's edition contains a special new section that will help company owners cope with the coronavirus crisis. You'll find out how to safeguard your company's cash position and reduce your tax bill in the months ahead.
The guide also contains fully updated information on the best alternative profit extraction techniques:
- Director's loans - how they can be used to defer tax for an extra two years and sometimes to avoid tax altogether.
- Pension contributions - Why company pension contributions are better than dividends. Plus a new chapter on putting business 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.
- Cars and motoring costs - a Plain English guide to the tax rules.
- Charity - 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 when you sell your company to an employee ownership trust.
These alternative techniques have become a lot more attractive following the recent increase in dividend tax rates.
There's also information on splitting income with your spouse and children and other tax saving strategies.