info@arcata.co.uk  |  0131 202 9146

Salary and Dividend Planning 2019-20

What is the optimal salary for a director who is an employee of a limited company?

It is important that the employee/director is paid over the National Insurance Lower Earnings Limit to qualify for state benefit.  In 2019/20 this is £6,136.

The split between salary and dividend for 2019/20 is explored here:

Salary vs Dividend planning 2019/20

 

If the employee/director has:

  • Other sources of income (savings or rental income)
  • Child benefit
  • Pension contributions

 

we can perform a ‘what if’ analysis to determine the optimal tax efficient salary and dividend split.