I was just looking for some advice really. I know I should speak to my accountant about this, and I will, but I still like to get other advice as well.
My husband and I have our own limited company. At the moment, my husband takes a wage akin to minimum wage, I don't take a wage from the business but I do have a part time job elsewhere that puts me right up to my tax bracket. This year we are fortunate enough that we may be able to take a dividend from the company and I was just wanting some advice on what is the most tax efficient way to do this?
Would it be to leave our wages as they are, and then take a dividend out and split it between shareholders? Or to not take a dividend but next year pay my husband (and possibly myself) higher wages? Or manage as we are doing and leave the money in the business, potentially being able to take twice as much the following year?
We are saving for a new house so if we DID take a dividend, or indeed paid ourselves more in wages, it would be going straight into an ISA to save for the deposit.
I'd love to hear your advice or opinions on the matter!
Following the summer budget announcement the whole game on salary and dividends has changed, and it really is individual. Your accountant will need some time to get her / his head around it, and will need to do it tailored to your individual figures.