The new way to pay Company Directors from April 2012

By Stuart 5 years ago1 Comment

Just in case you missed one of our previous communications, we thought it’d be a good idea to remind you of the most tax efficient way to get paid as a company director in 2012/2013.

From April 2012, you should pay an increased salary of £624 a month (from £589). At this level, you will pay no income tax or national insurance.

You will then also be able to take a dividend of up to £31,488 (net cash) without paying any additional income tax or national insurance (of course, this is dependent upon available company profits)

This means a director of a limited company can withdraw a total of £38,976 during the 2012/2013 tax year, without having to pay any additional income tax or national insurance.

You should seek our advice if you have other sources of income, such as tax credits or pension income and these additional income streams do impact on the figures above.

Category:
  Tax Tips
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One Comment

  • Hello
    as a director of a limited company the two diretors would like to take dividends out of the company. we havent eer taken any choosing to leave the money in the compnay for the past 7 years. (except we have takena a small salary and run all out costs through the compnay)

    we have s/hder funds of approx £30,000 and there is a furhter £60,000 in “profit” from the past years. how much can we take this out as divindends without incurring taxes (there are 2 directors) and can we do this for 2012-13 if we havent taken the money yet? can we only take dividends equal to the profit for the year 2012-13?

    thank you for you reply

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