Paying A Salary To A Family Member

Paying A Salary To A Family Member

How it works One of the most efficient methods of reducing a company’s tax bill and increasing the amount of cash withdrawn at the same time is by paying a salary to a member of the directors’ family. Such members can be the director’s spouse/ civil partner or...
Paying dividends to spouses: Avoid the tax traps!

Paying dividends to spouses: Avoid the tax traps!

Dividends to spouses Many one-man companies utilize their directors’ tax-free allowance by paying them a small salary. With proper planning, the director incurs no income tax or National Insurance contributions (NICs), while the company receives corporation tax...
Director’s Loan

Director’s Loan

A Director’s Loan Account (DLA) is “Money taken from your company’s accounts that cannot be classed as salary, dividends or legitimate expenses”. In many cases, Directors are unaware that even owe money to the company. Until the money is repaid...