Dividend Planning
The Chancellor’s recent mini-Budget and subsequent U – turns threw a number of spanners into the works as far as profit extraction strategies are concerned.
The Chancellor’s recent mini-Budget and subsequent U – turns threw a number of spanners into the works as far as profit extraction strategies are concerned.
If you operate your business as a personal or family company, you will need to extract some or all of the profits if you wish
Where a business is operated as a family company, it is necessary to extract the profits from the company in order to use them outside
If you operate your business through a personal or family company and extract profits in the form of dividends, it is prudent to review your
Changed business conditions in light of the Coronavirus pandemic have caused many companies to review their dividend policies not least because the company’s financial position
All taxpayers, regardless of the rate at which they pay tax, are entitled to a tax-free allowance for dividends. For 2020/21 this is set at
The 2020/21 tax year comes to an end on 5 April 2021. The last few months of the year are a good time to undertake
Regardless of the business structure (for example limited company or sole trader) it is possible to employ family members. This has some obvious advantages including
Directors’ loans – Beware of ‘bed and breakfasting’ It can make sense financially for directors of personal and family companies to borrow money from the
Timing dividends right could help save tax Timing the date of a dividend payment from a company can determine both the amount and the due
Dividend complexities The dividend allowance, which was originally introduced from 6 April 2016, was cut from £5,000 a year to £2,000 from 6 April 2018.
The tax system contains a number of allowances which enable individuals to enjoy income and gains tax free. In seeking to maximise your tax-free income,
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