Company Dividends

Countess & Co can provide comparisons and advice to help you select the best current options to minimise taxation. If you operate through your own UK limited company you will want to use the optimum strategy to extract money from your company. This will most likely be through a combination of drawing a low salary and taking dividend payments. Here we outline the most tax efficient salary and dividend structure for the 2019/20 tax year (6th April 2019 to 5th April 2020).

We have made some key assumptions when preparing these calculations:

  • You are a UK resident, but not a Scottish tax payer
  • You have no student loan balance
  • Your only income is your salary and dividends from your company
  • You are not caught by IR35, (bear in mind the new public sector IR35 rules)
  • You have a standard personal allowance
  • Your company has sufficient post tax profits to support these dividends
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