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Directors Pre Tax Year End Review
It is quite normal for a Director of a Limited Company to be remunerated via a combination of salary and dividends.
However, if their total Taxable income (which may include additional income such as benefits-in-kind, investment income, etc) does not exceed the basic rate Tax threshold then it is possible that they will not have any further personal Tax to pay. But, it might be possible to draw additional income from the Company to maximise the use of the basic rate band thereby meaning that there will still not be a liability to pay and this can be done is such a way that the Company will not suffer a cash flow disadvantage.
Obviously everybody’s circumstances are different and maximising the reliefs may not be possible in all circumstances. However, it is at least worth exploring the possibility and, if you are inclined to consider this option then please note that it needs to be considered and actioned before the end of this Tax year on 5th April 2014.
If you think that this is something that may be of interest then please get in touch.