Salary versus dividend

Considerations

Salary: Recognized as an expense to the company (saves 23% corporate tax), but liable for national insurance and high tax rates.

dividend

Dividend: not recognized as an expense, but only liable for 25%-30% tax and not National Insurance. The optimum: a combination of both.

Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.