Salary versus Dividends & Other Tax Efficient Profit Extraction Strategies 2023/24

Publication date: December 2023 - Plain English guide with dozens of examples and tax planning tips.

Now in its 24th 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, fully updated following the November 2023 Autumn Statement.

The guide also contains fully updated information on the best alternative profit extraction techniques:

• Directors loans - how they can be used to defer tax for an extra two years and sometimes to save tax.
• Pension contributions - Why company pension contributions are better than dividends.
• 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.
• Charity - Who should donate: you or the company?
• Capital Gains - How to pay 10% tax when you sell or wind up your company and how to pay 0% tax when you sell your company to an employee ownership trust.

These alternative techniques are becoming a lot more attractive following the recent increase in corporation tax.

There’s also information on splitting income with your spouse and children and other tax saving strategies.

The latest edition contains lots of new information such as:

• How the way you pay your own salary (monthly or as an annual lump sum) may affect how much corporation tax relief is obtained
• How to secure early corporation tax relief for directors’ bonuses or lump sum salary payments
• How using the ’roller-coaster’ income strategy can save you tax and help your cashflow
• A new chapter on when it may now be better to take most of your money from the company as a salary