360 Accounts & Bookkeeping Ltd
    Directors & companies

    Salary Myths

    Taking money out of your company is not always as simple as it looks on social media.

    Key points

    • Dividends can be a tax-efficient way to take profits, but they must come from available distributable profits and be properly declared. Paying yourself without understanding the rules can lead to unexpected tax bills and compliance issues.
    • Company profits are also subject to Corporation Tax, while dividends may create a further personal tax liability.
    • The solution is simple: understand the tax implications before taking money out, keep accurate records and plan how you extract profits from your business.
    • Good tax planning is about making informed decisions, not following shortcuts that could cost you more in the long run.

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