Are you familiar with the salary requirement for dividends?

An important area you need to be familiar with is the salary requirement for dividends. This affects how much tax you pay if you sell a part or all of the company. The profit may be taxed as earned income, with a tax rate of up to 58 per cent, or as unearned income, which is taxed at 20 per cent. We can help you to put the right plans in place.

 

Tax advice makes a difference

We often identify fiscal details that can be adjusted in connection with an audit or a tax return. These may involve VAT or have to do with filling in the tax return appendices correctly. But there are issues that need addressing throughout the year. Ask, ask, ask! That is what we are here for. Here we have listed some FAQs.

Keep up to date with FAQs by reading the News section on the website.

FAQs

  • Do I have to pay tax on a dividend? The answer depends on the type of shares you own.
  • We are a construction firm and want to build new premises – can we employ our own people for the job? And how do we work out the VAT if we do?
  • Should we form a separate company that invests in the new property?
  • Should I take more money out or leave it in the company? How does being a sole trader affect interest adjustment?
  • This new property – should it be entered as a capital asset or current asset (stock item)?
  • What should we do about the VAT for renovating the association’s club premises that we sometimes hire out?
  • How is the profit margin from selling used machinery taxed?