Chichester Bookkeeper

Call : 01243 201 401
Email :
B for Bookkeeping
“Enabling you to do what you do best”

"Think I would have been well and truly stuffed if I had not come across B4 Bookkeeping :)"

The following information is indicative and intended as an example on how to take monies out of your company, every individual’s position is different and you should consult an Accountant on how to maximise your returns based on your personal circumstances.

There are 3 main ways to get pay yourself

  • Salary
  • Dividends
  • Expenses

Salary:

In 2016/17 you can pay yourself via PAYE, £671.67 per month, £8,060 for the year before paying National Insurance contributions.

You can pay yourself more but you will attract Employer and Employee National insurance contributions and Income tax

NB, if you have 2 or more employees on the payroll, any Employer NI up to £3,000 will be credited to you by the HMRC as part of the Employment Allowance scheme.

Dividends:

Some dividends are tax free, you can take £5,000 in dividend without any personal tax.

Above that they are tax @ 7.5% up to the higher rate tax threshold, and then at 32.5%.

Remember you must be making a profit first in company and pay Corporation Tax before you can take any dividends!

Expenses:

Any costs you incur personally in performing your duties as an employee/director of the company can be reclaim by you.

e.g. pay for parking in cash, you make an expense claim for the company, it pays you the money back

These expense can then be taken out of the company with no tax implications or need to make a profit
 

Some other ideas:

Remember to claim your mileage if you’re traveling on business using your own car, it’s worth £0.45 per mile for the first 10,000 miles, £0.25 thereafter.

You can claim £150 annually for staff entertaining tax free, usually your Xmas party!

Your home office, if you do your paperwork at home, you can claim £4 per week tax free.  However, if you arrange for a lease agreement between the company and you, you can claim a portion of your home costs based on room size and usage.

As always, we suggest you speak to ourselves and/or an account, as the above is not always the most tax efficient, use subject to your personal circumstances.

 

 

Cloud Bookkeepers and Accountants since 2009!

 

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B4Bookkeeping Ltd

Tel : 01243 201 401

  1 Lincoln House, Chichester Fields, Tangmere, Chichester, West Sussex, PO20 2FS
Company Reg Number : 9151684. VAT Reg Number: 192 380 988. MLR Reg : 12847995

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