Accounting for use of home really does point out the differences between running a business as a director / shareholder of a limited company and running a business as a sole trader. Running your business as a sole trader allows you to claim tax relief for costs, charged to you as an individual, that you can […]
Category: Limited Company
How much salary/dividend? Director and Shareholder in a Limited Company.
It is generally accepted that it is more tax efficient for a director/shareholder to extract profits from a company as a dividend rather than a salary. To optimise your earnings my calculations suggest a 3:1 dividend/salary mix. Tax rates pretty much keep in alignment throughout the tax system be it sole trader, employee, corporation or dividend taxation. There are differences but it is swings […]