How to Pay Yourself as a Ltd Company UK | BEST Directors Salary 2024/2025 (Dividends vs Salary)

The MOST TAX EFFICIENT SALARY to pay yourself as a DIRECTOR of a Limited company in 2024/2025. This is how much I will be paying myself as a DIRECTORS SALARY this year and this is the recommended salary that has been APPROVED by my ACCOUNTANT.
Although this is not financial advice and I am not an accountant, for the majority of people I am confident this is the best way to pay yourself from a Ltd company in 2024/25.
In the 2024 Spring budget, the chancellor announced further cuts to employee's National Insurance bringing it down to just 8%. Although this is lower than in previous years, I still recommend paying a director's salary below the primary National Insurance threshold.
Salaries above the primary threshold are subject to double taxation, 13.8% employer's National Insurance and 8% employee's National Insurance. This is why recommend paying dividends above the primary threshold instead as NI does not apply to dividends.
Income tax and national insurance thresholds are unchanged this year, the chancellor has previously frozen these thresholds so that they generate greater tax revenues. As salaries increase but the thresholds remain the same the government can generate more tax revenues.
Dividends vs Salary
Combining a basic salary and dividends is usually the most tax efficient way to pay yourself from a Ltd business. The basic salary makes full use of the tax free personal allowance and dividends offer a better tax regime than the traditional income tax + national insurance combination.
Depending on your personal circumstances, this may not always be the case and you may be better off with a full PAYE salary. I recommend discussing your personal situation with an accountant so they can advise what the best director's salary would be for your Ltd business.
The secondary NI threshold is the same level as the personal income allowance which means it is more tax efficient to take a slightly larger base salary than in previous years.
Income Tax rates and thresholds for 2024/2025:
• Personal allowance = £12,570 (0%)
• Basic rate = £12,571 to £50,270 (20%)
• Higher rate = £50,271 to £125,140 (40%)
• Additional rate = £125,140+ (45%)
Note: For every £2 you earn over £100,000 you lose £1 of personal allowance.
Dividend tax rates and thresholds for 2024/2025
• Basic rate = £13,071 to £50,270 (8.75%)
• Higher rate = £50,271 to £125,140 (33.75%)
• Additional rate = £125,140+ (39.35%)
Dividends Explained
• Dividends are payable to shareholders from current year profits or retained profits from previous years
• Dividends can be paid monthly, quarterly or annually (interim dividends) or after the annual accounts (final dividends)
• Dividend tax is paid via self assessment
• The tax free dividend allowance for 2024/2025 is = £500
National Insurance rates and thresholds for 2024/2025:
• Lower Earnings Limit (Pension Threshold) - £6,396 per year (£533 per month)
• Primary Threshold (Employees) - £12,570 per year to align with personal allowance (£1,048 per month)
• Employees Rate: 8% up to £50,270 and 2% over £50,270
• Secondary Threshold (Employers) - £9,100 per year (£758 per month)
• Employers NI = 13.8% above the secondary threshold (no reduction above £50,270)
NI is the core reason directors pay themselves Dividends, it prevents the double taxation of employees and employer's National Insurance which is 21.8%!
Corporation tax rates and thresholds for 2024/2025:
• Less than £50,000 (Small Profits Rate) = 19%
• £50,001 to £250,000 = Marginal Relief
• £250,000+ = 25%
Most Tax Efficient Director’s Salary 2024/2025
• Recommended Salary: £12,570 Per Year / £1047.50 Per Month (Above this pay dividends instead)
• It makes full use of your personal allowance
• Above LEL threshold to qualify for state pension
• Below primary threshold (no employees NI)
• Above secondary threshold so employers NI becomes due from £9,100 to £12,570(£3470 at 13.8% = £478)
• However, salaries are an allowable business expense saving on corporation tax at a minimum of 19%: £3470+ £478 at 19% = £750 (Save £272)
• NI payments can be made monthly/quarterly, the best salary that doesn't require National Insurance payments is £9100 per year.
• A £5,000 Employment Allowance is available to Ltd companies with at least 2 directors/employees (inc. husband & wife directors) earning above the NI Secondary Threshold
How do you pay yourself as a director of a Ltd business in 2024/2025? Let us know your preferred director's salary in the comments below!

[@HonestMoney]

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[@nicolasbenson009]

I like investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or when ever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market just like regular stock. That’d be enough to create a portfolio that would pay you between $50k to $70k in dividend income

[@berniceburgos-]

Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional

[@tatianastarcic]

I completely agree; I am 60 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!

[@Michaelparker12]

As a new investor it's always great to hear from a person who has gone through all the difficult times and come ahead of it. What are some strategies i can employ to be successful?

[@tatianastarcic]

Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.

[@BridgetMiller-]

I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.

[@simplydividends]

Some examples would have been helpful. Comparing 50k standard salary against 50k through low salary, dividends and corporation tax

[@hairobinson]

I was looking forward for this video especially just after the budget .. Thank you as always

[@MoneySuccesswithAndy]

That was really well explained, super clear excellent video. Thank you for posting.

[@CabinetFramingUK]

Well done. This is the real valuable info we subscribed for. Smart business guys end up showing their accountants a thing or two most times 👍

[@aspireconsultingandtrainin1896]

Fantastic and simple explanation, that not even my Accountant was able to explain to me on this in the way that you have!

[@davidcollier6520]

Thanks for posting another great video.

[@GeorgeT96]

Back to the normal videos lets goo! Good job

[@deemistri3599]

Thank you so much for posting this video. Very helpful indeed.

[@ilonastezowska9498]

Great content, as always. Really helpful. Thank you!

[@joshanthony2679]

found this really easy to follow and understand. In the process of setting up a limited and most of the info our there is very confusing and quite daunting to say this least. Your video has given me a calmer piece of mind about doing it and now feel more comfortable when tackling the finances. It would be great if you could do an updated dividend video just incase anything has changed (watched your 2021 to get an idea of how it works!)

[@marcus2118c]

Just started as a ltd company, this is so helpful. Cheers!

[@ismellofmusk]

Can you do some examples of how it looks at say. 50k Dividends. 75k. 100k and £125k maybe £150k

[@JoshCarterWeb]

@HonestMoney this would be really interesting to see

[@hatterbez2943]

There's loads of ways of saving huge tax but it depends how much admin you wanna do! Don't let the anti business tory scum have the tax money though, so to save any tax all up for!

[@robkgilchrist]

@@JoshCarterWeb @HonestMoney, agree this would be really interesting to see

[@gnorweb7339]

At a profit before director's remuneration of £79k or above it becomes better to start taking more salary at the basic rate rather than pay marginal rate of corporation tax and basic rate tax on dividends. I hope that helps.

[@robbirkhead]

Agreed! Would like to see examples of most efficient ways to take home at those increasing director’s drawings amounts.

[@ArtursBondars]

Very helpful, thank you!

[@mikeh9882]

Many thanks! These are a very useful and concise set of vids on Directors pay and dividends each year. But I'm struggling with employer pension contributions - I've made mistakes in previous years on this and the year end is looming! Thanks again

[@mikeh9882]

Just to add, I have made a significant employers contribution to my personal pension. Thanks

[@shaunjohnuk]

Yes, we need some examples on various salary's from low to high

[@highgatehandyman6479]

Great info.

[@tylerfayosephotography]

great video, this is exactly what we did for 23/24,!!

[@nicholasbrandon8699]

This is a really good video - thanks for doing it and thankfully we are doing everything just right. However, it might be good to mention this. I am 56 so I can pay money into my personal pension which will reduce the net profit and therefore reduce our overall corporation tax liability. If I choose I can then withdraw 25% of any private pension (or contribution made) up to around £ 250k (can't remember the total). So doing this is very tax efficient to avoid paying more in CT and more in dividends that might take you into a higher tax bracket. Obviously, this approach has a finite life but definitely worth doing in my opinion - would be interested in your thoughts.

[@user-lx6pk9os2d]

The real answer is - it depends on your circumstances. For example - I pay myself, my wife and my daughter £750 a month - all of which goes into the "family pot" from which all the household bills are paid. This means we pay no tax or NI - but gain NI credits. We also claim our mileage which gives us all up to an additional £4500 a year tax free. All profit from the company is paid into our pensions - hence no corporation tax. Clearly, this setup wot't last forever - but at present it really suits us. It's also going to set my daughter up with a strong pension pot at the start of her working life.

[@rjj00]

HMRC look here ..

[@user-lx6pk9os2d]

@@rjj00 Perfectly legal. So why wouldn't you?

[@rjj00]

@@user-lx6pk9os2d What Jimmy carr did was legal , doesn't make it moral

[@kgill99]

Pay to wife+daughter only legal if your wife and daughter have legitimate roles in the business, not sham roles or exaggerated roles Only legal if your mileage is business related Only legal up to pension limit, I think 40k per year and again only legal if your wife and daughter have legitimate roles in the business.

[@rjj00]

^ what he said ✅

[@Mr_Ali_G]

Was waiting for that

[@winjustin]

Thank you for making this video. Thank you also for showing the workings behind your figures. As others have mentioned, it would be of help if examples were included using different dividend levels. However , that is a fairly easy calcualation to do.

[@JD-mw8ob]

Thank you. It would be good to hear a similar video but for those circumstances where an individual runs a Ltd Company where they are retired and drawing a pension or where they work along side their Ltd Co in another paid job outside the company . ? Bw

[@michaels8638]

Perhaps do a video on setting up a registered charity as a subsidiary of your company, far more tax efficient and pay less tax in corporation tax.

[@MrGazzy]

Love these videos! Great to see you back making this content. The fact they keep lowering the dividend allowance really grinds my gears. Do you think they'll eventually wipe the tax-free dividend allowance completely?

[@simplydividends]

No, otherwise everyone would have to file a self assessment, even if you had a few quid in dividends from holding a tiny amount of stocks. Frankly the dividend allowance and capital gains thresholds have been cut to crazy lows.

[@MrGazzy]

@@simplydividends That makes sense. We’re constantly paying more and getting less in this country.

[@wilsonproperty3320]

@honestmoney have you done any videos on how to make pension contributions from your Ltd company, a way to efficiently extract company funds into the directors pensions? Thanks in advance!

[@BMOzzie]

Better content

[@DanielHarrisCodes]

Can’t believe how much we’ve seen the dividend allowance fall over the years, easier than targeting the big companies though I suppose

[@counterleo]

They did bring the CT rate up to 25% for larger companies which is a step in the right direction, but I agree, they could have kept the dividend allowance at 2k at least

[@mesieful]

Great video as usual. But I thought the NI reduced to 8% from 2024

[@hhcollective]

Could you explain the £5000 employee/director allowance a touch better? How does it work when you try to claim this allowance and what did you mean by "used up by your employee"? How does the allowance get used up by a second director or employee?

[@rampageashton]

Don't forget the magic of Director pension contributions for some more tax savings.

[@Jonay1990]

Don't forget the Scottish income tax rates are different (not that it will make much difference to the outcome of this... but worth at least adding in... or at least highlighting that the income tax rates listed are for England/Wales/N.Ireland only)

[@lwo7736]

This is so useful, thanks dude I've got 40k in my business bank account and I want to buy my first house without getting rinsed on tax!

[@Samxronn]

As you mentioned individuals/husband & wife I'd be interested to know when a ltd company becomes more tax efficient than a sole trader/partnership. As you're already paying corporation tax on almost all the income, regardless of the dividends structure it seems to never be more efficient to be a ltd company unless you're in the multiple hundreds of thousands.

[@busymamatips1475]

I’d like to know how this fits if someone already has a part time job and opened a ltd company for side hustling.

[@robkgilchrist]

I found your video really interesting. If you pay yourself mainly by Dividends, does it mean you will end up with a large Corporation Tax bill? Salary is a business expense, so it reduces your CT. But if you reduce your salary, it means your profit will go up and the CT is calculated on that before the dividend is taken. I had thought you could put all your profit into a Pension contribution to reduce the CT but you need the profit to pay yourself dividends.

[@jordonleesmith5600]

Could you expand on this video to explain how this works when you still have a 9-5 salary + a director earning income from a Ltd. Surely my personal allowance would be used up already from the 9-5 salary, so would it be better to pay myself all earnings from the Ltd as a dividend and have no salary from the Ltd at all?

[@felawes]

The £758 is company specific. So you can have salaries from several companies. Just keep each one below £758. And if you don't control them you can also think about Employment Allowance which is £5,000pa.

[@UXClicks]

What if someone just started their company this year and no record of last year's earning - how will they pay themselves dividend ?

[@monturrahman878]

Can you delve more into Employment Allowance please

[@Boneamps]

If you are only yourself, but want to use the advatage of a Sole director and sole employer (being 2 different people) is it allowed to add an accountant of legal representative as director? I am wondering if it would be possible/allowed or even convenient for an accountant to provider service of being director of the company and charge some of his fee as salary as director of that company. Do you have any insight on this?

[@datofficial6062]

Subbed after 1:31

[@AM_o2000]

NB What with interest rates being higher now, it's worth bearing in mind that savings interest counts towards your personal allowance.

[@ru.london]

Good morning. Sorry can't find your name :) Can be paying pension affect your calculation? Thank you. Ivan.

[@stevewatt9477]

Very good presentation. I would just comment that if you wish to consider yourself receiving zero from the company as an 'officer' of the company, and hence an employee, but you are providing a service to the company via a fee (eg as an electrician), you could save £374 more per year by not paying employer's NI. Also can save you running a payroll with all the returns to make. If you are really worried about IR35, which is not really a risk, you could bill a few clients via self-employment fees. Second comment: If you are above retirement age you should not be operating through a Ltd Co.

[@kgill99]

Why not for the second comment?

[@gavinmlfa3325]

Would you recommend this level of pay regardless of any other income through savings and property etc?

[@absabs3811]

If you have a directors loan account in the positive file a ct61 form and charge your company 9% interest on the money it owes you, the business pays the tax liability which is negated through corporation tax so tax free and far better returns than virtually anything i can think of.

[@MrAlexy90]

Hi mate, can you still claim NI contributions if you’re paying into a directors loan account?

[@basicsurfer08]

i wonder if the £5k employment allowance can be claimed retrospectively?

[@RN-fd5tr]

When you have a limited company do you have to file a different type of slmekf assesment to a PAYE employee? I ask because at the moment I am a PAYE employee and did my standard self assesment return in April. This tax year 24-25 I'm going to be doing 4 months work that requires me to register as a limited company. So in April 2025 will I need to submit 2 self assessments? 1 for my PAYE earning and 1 for my limited company earnings?

[@user-mw1lm1vs9p]

Can you link to the rules for 5,000 NIC employers allowance for companies with at least 2 paid employees where both are directors and shareholders please?

[@caevv]

Can you do 1 video for company with spouses, and one for big earners 150k+

[@Ben_Chode_420]

Good video however you didnt consider Pension Contribution as a way to reduce Taxable Income. I personally dont see any advantage to be inside or outside IR35 if one contributes 60k per year in Pension. I could be missing a trick here though.

[@Bully000001]

This relies on having sufficient retained earnings to pay the dividends. If these are insufficient and reliance is on the profits emerging in the year payments have to be made by company loans. To be treated as a loan and not salary, interest needs to be charged on the loan at rates laid down by HMRC. Starts to get more complicated!!!

[@NoName-mq8cs]

Can you make a video on how to cash out and take profits in crypto especially as we are headed into a Bull Market!

[@SimWz]

What about IR35? I thought it was not possible

[@gnorweb7339]

This is only correct only if your profit before tax (excluding directors remuneration) is less than £79k. When you have more profit before tax than £79k it would be better to draw a salary at the basic rate of income tax because otherwise you will hit the marginal rate of corporation tax. It is better to draw a salary at the basic rate, pay the income tax, employee's and employer's national insurance and shelter the corporation tax at the marginal rate and the basic rate tax on dividends.

[@HonestMoney]

Thank you for the suggestion, I'll take a look into that and see how the figures compare 👍

[@gnorweb7339]

​@@HonestMoney You're welcome. I'm sure if you look into it you will find that I am correct.

[@OffshoreNSTiger]

My wife is a soul director of a limited company but has income from another Job. I assume the optimum salary to pay as director would be what is left over from the tax free allowance of £12,570.. Any advice ?

[@naijamanuk]

Is there not now a maximum amount you can claim in dividends? £5k or so??

[@Martin-cf5lo]

You forgot to mention that annual earnings of at least £10,000 triggers pension auto-enrollment and your viewers should check the rules around this if they employ staff.

[@sorthist9007]

if 0 salary was paid to me and my parents, we would take £400k profit from company. Both parents are shareholders and I am not. How should we split salary/sipp/dividends to reap the best rewards?

[@ChiefMotivation]

Hi Darren. What are your thoughts on having a free zone company in uae own 100% of the uk business? is that legal to 'avoid' taxes?

[@Jack__Reaper]

That wont work as its where the money is generated. The tax system has hundreds and hundreds of years of seeing people do silly shit. There is no free lunch and i can guarantee anything you can think of, they have thought of it first and are waiting to trap you.

[@aaronmarc125]

Would being on 12k salary affect any credit or mortgage applications? If you go to get credit for example car finance or mortgage. The salary wouldn't cover it?

[@rjj00]

Yes.

[@xChikyx]

Does this still aplies if I'm the director and shareholder but i dont live in the Uk?

[@danfrost9492]

Now we need a way to run everything like the MPs in the country and pay zero tax

[@iw.blackwood]

If you own your own company and pay 25% corporation tax surely overall it’s better to pay your self a wage . Employers £5000 NI allowance solves that for a x2 director or employee setup . The full 25% reduction in corp tax from paying a full wage is substantial then fair enough your have to pay some extra tax and national insurance which amount to about 8% NI soon and income tax 20%- 8.5% dividend then your overall paying 5% less tax by taking a wage PLUS you can pay maximum pension same level as taxed salary , which doesn’t apply with the dividend route .

[@counterleo]

the video assume a 19% CT rate, not 25% if your business is doing well enough that you pay CT at 25%, congrats, but then you can probably hire an accountant

[@SolidRavenOcelot]

How does paying dividends relate to getting credit for cars, your mortgage rate, other bills and payments. Does having a salary of £12570 restrict what you can get credit for? I get dividends make up the rest of the salary but is this declared to mortgage companies and car dealerships?

[@counterleo]

Lenders may ask to see at least 2 years of company accounts and might only take 50% of the dividends into account as income. Check with the individual lender. That being said car finance is crap. If you don't want to be poor, avoid credit unless it's to buy a home or cash-generating assets. Not depreciating assets.

[@PJ-om2wq]

Hi. I'm a high rate tax payer from a regular job working for a large company, and I also have a side hustle. Up until now I have paid myself and wife with dividends to use up the dividend allowance that used to be £2k each but now it's only £500 that's becoming useless. Right now I'm thinking of just making my wife the 100% share holder because at least she's not a high rate tax payer as it seems hardly worth jigging around with the percentages every year to get my own £500 allowance. Is there something I'm missing?

[@counterleo]

You should do that, but you should set-up preference shares for her or some sort of share structure that lets you retain full voting rights, otherwise if you split up there goes your company lol

[@deborahrose7047]

Examples please

[@geralddavison]

What about occupational pension contributions. If you pay yourself a salary, subject to NI and PAYE, but pay some of that into a pension, you would be entitled to income tax relief on the pension payment. If you wish to maximise your pension contributions is it better to pay a salary, then claim income tax relief or pay as dividends and then pay into the pension without income tax relief? For example pay a salary of £30,000 then pay £17,430 (30,000-12,570) into your pension, getting 20% relief. You'd pay more in NI (Employee and Employer), but avoid Dividend tax. I'm probably making some horrible error in my "logic" 🙂

[@1evilpie]

Any pension contributions should be made direct from the Ltd in to your pension to maximise tax efficiency. Don't pay yourself and then make the contribution out of your taxed money. The tax relief you get back isn't as good as just paying it direct.

[@LinusNorton]

Sorry if I missed something but why not pay yourself the lower earnings limit and do the rest in dividends? Isn't that more efficient?

[@monturrahman878]

LEL is less than the Personal Allowance so you might as well take the higher tax free amout

[@LinusNorton]

@@monturrahman878 maybe the reason is coming out better for me is rental income?

[@counterleo]

between the LEL and 9,100 you'd pay zero tax on salary and you'd pay 19% corporation tax as dividends and between 9,100 and 12,570 the video showed it, you are still better off paying a salary above 12,570, dividends

[@joelbrown2782]

Are you allowed the personal allowance every year? Whether you are employed by someone or self-employed? Could never get a straight answer.

[@jamess7717]

Yes

[@joelbrown2782]

@@jamess7717 thank you

[@ethnicalbert]

Corporaation tasx is 25% now though... Not 19% thats a big difference

[@neilcharlton]

Uk tax is a joke. Work hard to pay for all the free loaders.

[@counterleo]

UK tax is nothing compared to Europe, my take home would be £400 higher if I lived in the UK with the same gross salary.

[@user-ys7gw2xc6h]

You didn't address what the best approach would be if, for example, you have £250-300k profit at the company level but want to take 2x50k for the two directors. With the changes to corp tax and NI, it's not so simple. Although you seem to have good info, as you say, use an accountant, not someone on KZbin!

[@1985MrFRESH]

What happened to the property doom and gloom videos ?

[@UltraJamZHD]

Hmrc it says after £37,700 its higher rate so confused

[@counterleo]

HMRC deducts your personal allowance in arriving at your taxable base, then it applies the 37,700 threshold. So 37,700 plus 12,570 = 50,270

[@UltraJamZHD]

@@counterleo :0 oooohhhhhhh thankyou!!!!

[@Shamele55]

Clear as mud. Would be more interesting to see actual examples at different earnings

[@chazprouk]

I agree with you but he’s done really well considering the U.K. tax system is completely broken and inefficient.

[@nicholasupson6779]

It’s not that hard. 😂

[@adriandillon7730]

I live in Scotland .. so if I pay myself £12,570 a year .. I’ll still have £12,570 to pay in tax.. the SNP are aiming for 100% tax rate 💀

[@Calamancotrading]

The time taken to mess about with NI to save £200 a year isn’t worth it. Additional work that you have to with accounts and HMRC takes way too much time and not worth it for that saving. Will stick to £758

[@counterleo]

unless you are making exactly £12570 profits you will be declaring dividends anyway, so filing self-assessment anyway. your Ltd company also has to produce accounts anyway. it does not cost anything more to do it properly. plus, given a choice, I'd rather pay NI to the NHS than corporation tax to the filthy gov.

[@Calamancotrading]

@@counterleo tosh. You’ve got extra work remembering to pay NI on time. I’m way too busy - the time taken would be way more than the £200 saved.

[@saelaird]

Videos like this make you realise the tremendous tax burden we all face in the UK. It's like the powers-at-be hate growth.

[@counterleo]

go to Europe then, you'll come back quickly. my monthly take home would be £400 higher if I lived in the UK.

[@martindrewelius2425]

As a director of a Ltd company you should only pay yourself 49500 pounds a year. Not more.

[@jamescat2386]

I understand this and do this myself but I also am caught by the realisatioin that if we all do this we increase government debt, to which is will respond by attemting to create inflation to devalue the debt, the simple idea that the 'bigger the number of pounds in your pocket the richer you are' doesn't take into account changes over time that will devalue money, the answer that was 'privatise government services to create efficiency = lower the tax burden' has not played out over the last 40 years, now you pay more tax and the government rents services from the private sector. I don't know what the answer is but tax avoidence will not make the majority of us wealthy long term.

[@user-bk8bi9it4m]

Seek medical help.

[@garethwilliams4467]

not interested in the majority. Are they interested in me ?

[@darktheme923]

So basically, go to college.. work hard, and give away all your money :D

[@everyonecancraft70]

Surely under 15k is illegal for a full time job as below national minimum wage rate. Or do you lie about your hours.

[@NeilDudman]

If you’re a director you have no fixed hours, so £15k could be for just one hours work…

[@counterleo]

minimum wage does not apply to directors

[@eamonndelaney188]

BS of the highest level. First clue is in first 20sec. He is not a financial or tax advisor.

[@davidtones4917]

It's a shame loop holes like this exist and are exploited, no wonder we don't have enough funds for public services and people like me on PAYE have no option but to pay the correct amount of taxes

[@spencer2721]

You are taking rubbish, what exactly do you mean by pay the correct amount of taxes? He is paying the correct amount of tax. I am a Limited company owner, I pay my own way and claim nothing in benefits, all income is money I have earned through adding value to customers, it’s the freeloaders who do not work but could work who you should be having a go at, that is the reason why taxes in Britain are so high. Your statement makes no sense at all, you just sound bitter, if it is so easy why don’t you start your own Limited company or become self employed then you could do the same, it’s called rewarding entrepreneurship!

[@davidtones4917]

@@spencer2721 my point was that this is in essence a loop hole to allow people like yourself to pay less tax than a person on PAYE. As you can specify how much of your income is salary and how much is 'dividends'. Not having a go at people who use this loophole as I'm sure most people would pay less tax if they could. Its the government who should make the tax system simpler and remove loopholes like this so they have more tax revenue to support local/national services (NHS, local government, transport infrastructure)

[@counterleo]

@@davidtones4917 employees including directors are rewarded for giving their time to the company. shareholders are rewarded for bringing their capital to the company. those are 2 distinct roles, even if assumed by the same person. shareholders must be rewarded fairly, given that most businesses fail within the first 3 years and they get nothing in return if that happens. but if you think it's that easy, go ahead and start your company, eh

[@garethwilliams4467]

@@davidtones4917 why ? who cares about public services. If you want it then pay via insurance. You shouldn't be getting your hands on anyone else's money.

[@dollop6213]

This is only scratching the surface in tax loopholes

[@mrsulzer66]

Why so complicated? Surely much easier if everyone treated as employee status and subject to PAYE, a lot more money for public services 👍🏻

[@counterleo]

employees including directors are rewarded with a salary for giving their time to the company. shareholders are rewarded with dividends for bringing their capital to the company. those are 2 distinct roles. plus, neither directors nor shareholders get any holiday pay, sick pay etc. and they take a massive risk. if you think company owners have it that easy, go ahead and set-up your own - spoiler alert: most businesses fail within their first 3 years

[@fxsurgeon1]

Honest Money lol. Not possible. Money originates from debt. It’s dishonest from the beginning.

[@JoinTheTemple]

What? Money is a medium of exchange and a store of value. Perhaps you mean currency, not money?

[@SDrtheone]

Just because you've added the caveat "This is not financial advice" does not mean that you can freely produce a video on tax advice. Even myself, being financially qualified am not allowed to talk about tax to any of my clients. I would tread very carefully if I were you. The FCA and PRA do not fuck around with regulations.

[@BillyBullshitter]

I want to start my own company. Is the best way to do a LTD company or a sole trader. And I want to pay as little tax as legally possible. Like the MPs do.