How to Pay Yourself as a Limited Company Director in 2024/25 Best Salary V Dividends and Interest

In this video Chartered Tax Adviser Joshua Tharby shares the basics of income tax and corporation tax, and the factors they play in determining the most tax efficient salary and dividend mix.
If you're a limited company director or shareholder and want to know the most tax efficient way to extract cash from your business this is essential viewing!
Want to work with us? Book a call at www.jsmpartners.co.uk

[@lukesilvamusic]

Great value!

[@JoshuaTharby]

Thanks!

[@tv848]

Nice video. I would have liked to have seen business tax and personal tax side by side in the various scenarios.

[@JoshuaTharby]

Might get that in for a couple of weeks time, look at total after tax income based on different profit levels

[@psalmjrel23]

Thank you mate, keep going with this valuable content. Wish you the best

[@JoshuaTharby]

Much appreciated!

[@ahamilton1305]

Let’s say your company brings in 350k with basically nil expenses - take 50k - what then could be done with 300k within the company (let’s say it’s a service business and there wouldn’t be any requirement to invest in the business)

[@Jeffybonbon]

Hi Josh could you do a comparison video if a Director takes all there 50k income via salary at present and compair it to dividend if the dividend rate was to be the same as Income Tax rates I think its worth doing just to show worse case sanario

[@malachifullerton3042]

Love to speak to someone about my business

[@philipwood123]

d video. Not sure I follow your calculations thou. EG. Tax on income of £50,270 you have at £3,255. £50,270 - £12,570 at 8% tax equals, £3016. Not £3,255

[@tv848]

If you've loaned your business money and it's paying you back at 0% interest are the repayments made to you before Corporation tax?

[@JoshuaTharby]

After tax repayments

[@Jeffybonbon]

we can all see where this is going the old strategy Low salary high dividend is just about over my prediction is Labour will tax dividends at income tax rates when they come to power and Directors will end up 100% on the payroll paying NI and employers there has been a rush for landlords to form a company and the sting in the tail is coming as most of the public recive Dividends via there ISA it will not effect most but it will effect Directors in the long run 50k a year is a joke for taking risk and building a company IMO

[@JoshuaTharby]

If they did that the number of people heading for the shores would be even greater than it is now!

[@Jeffybonbon]

@@JoshuaTharby The tories have done 50% of the job now Labour will finish it

[@JamilAhmed-wj5wc]

@@JoshuaTharbytrue Josh

[@JamilAhmed-wj5wc]

@@Jeffybonbonthey will, 2 cheeks of the same…..

[@Jeffybonbon]

@@JamilAhmed-wj5wc 100% correct the more i see the more this strategy will be taxed higher