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Dividend or Salary?


#1

Hi I have a Limited Company that I run with my partner, we are both directors. I pay him his directors salary through payroll as its his main job. My problem is I don’t know the most tax efficient way to pay myself. I have a full time job as well as the business so my tax free allowance is used. I thought Dividend was the most tax efficient way, but I would pay corporation tax as dividend is not a business expense where payroll is?


#2

Questions like this are best answered by your own accountant. This forum can advise you on how to represent particular approaches in QuickFile but not what approach to take in the first place.