Salary versus Dividends & Other Tax Efficient Profit Extraction Strategies 2024/25 - Paperback

by Carl Bayley (Author), Nick Braun (Author)

Revised November 2024 - Includes all changes from the Autumn Budget.

Now in its 25th edition, Salary versus Dividends is a plain-English guide with dozens of examples and tax planning strategies, essential reading for ALL company owners and directors.

It tells you how to choose the best mix of salary and dividends for YOU (the answer varies from person to person and from company to company).

The latest edition is completely up to date with all the major tax changes announced by Chancellor Rachel Reeves in the October 2024 Budget and contains lots of new information, such as when it may be better to take most of your income as salary - recent changes have made this scenario steadily more common.

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 paying yourself rental income is better than dividends.
• Interest income - How to pay yourself 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.

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