This is intended for a company director and their spouse/partner (if employed by the company).
The three figures for each month are:

1. Monthly salary – this is the amount that is processed through your company payroll
2. Monthly dividend – payable if there are sufficient profits in your business
3. Personal tax bill – this is the amount you need to put to one side to pay your tax bill, assuming the full monthly salary and dividend have been paid.

A mistake that could cost you dearly

Using the scenarios above, your salary will not be liable for Employee National Insurance contributions but do bear in mind that if you want to keep 100% of your child benefit then you’ll need to reduce the monthly dividend that takes you over £50,000 by £23 per month and the tax you need to save by £2 per month.

Let’s get personal

These figures are based purely upon the earnings that you take from your business and do not take into account any other income that you receive from areas such as benefits, interest on savings and investments or rental income.

Nothing beats personal service. We calculate these figures for all of our clients, taking into account their individual circumstances.

With the right advice, you can have confidence you’re claiming only what you’re entitled to and paying the minimum of tax you are legally required to. If you’re unsure, call our team on 01923 800444. There’s no cost to you and a second opinion will put your mind at rest.