Taking Money Out of the Company

There are three main ways of taking money out of the company, which are explained below. With items 2 and 3 there is an associated tax liability. Sensible tax planning in conjunction with us will minimise this.

1) REIMBURSEMENT OF EXPENSES

The company can reimburse you for money’s you spend on its behalf. It can further compensate you for the use of your own vehicle, for subsistence expenses etc. Please see our section on Tax Deductible Expenses.

2) SALARY

We will help you to decide on the salary level your company is to pay you. Your salary will be liable to tax and National Insurance. We can undertake the payroll preparation for your company.

3) DIVIDENDS

The advantage of paying dividends is that they come with tax credits, and they incur no National Insurance charge. They are extremely tax efficient and easy to administer. If liable to IR35 their use will be limited.