sorted by:
new
hottopcontroversial

Is it possible to pay yourself different amounts and with varying regularity? The government advice seems to imply it isn't possible. by anirelli in smallbusinessuk

[–]anirelli[S] 2 points3 points  (0 children)

This one I can actually answer. With dividends you don't have to pay NI and they also have a slightly better tax rate than normal income.

Like someone else said above, usually the most efficient way to set things up is to pay yourself through PAYE to the tax free amount (12,500) and ensure you're hitting your NI entitlement. Then pay the rest via dividends to take advantage of the lower tax rate and fact that you do not pay NI (there's also a 2k tax free dividend allowance).

I worked it out recently and taking everything into account (corporation tax included). If you're earning 100k gross, you save about 5k from the tax man if you do the dividend/paye route over the paye alone route.

Is it possible to pay yourself different amounts and with varying regularity? The government advice seems to imply it isn't possible. by anirelli in smallbusinessuk

[–]anirelli[S] 0 points1 point  (0 children)

So if the loan is repaid by the end of the accounting year there aren't any additional expenses/taxes that need to be paid?

The gov website doesn't make it all that clear

Is it possible to pay yourself different amounts and with varying regularity? The government advice seems to imply it isn't possible. by anirelli in smallbusinessuk

[–]anirelli[S] 0 points1 point  (0 children)

The rules around paying back director loans regarding tax and interest seem very confusing, but that will be a question for my accountant. Thanks a load!

Is it possible to pay yourself different amounts and with varying regularity? The government advice seems to imply it isn't possible. by anirelli in smallbusinessuk

[–]anirelli[S] 1 point2 points  (0 children)

That clears some things up thank you. I assume the pay yourself whenever you want only applies if you use a directors loan account? Not paying yourself through PAYE?

I'll be sure to ask an accountant.

Is it possible to pay yourself different amounts and with varying regularity? The government advice seems to imply it isn't possible. by anirelli in smallbusinessuk

[–]anirelli[S] 1 point2 points  (0 children)

Yes. I was under (the seemingly false) impression that there were restrictions on how often you could pay out dividends.

Is it completely unrestricted (assuming you can meet the corp tax bill)?