Martin Jackson, Lead Tax Writer at Croner-i takes a look at the key differences between dividends and payroll, including which is likely to be more tax-efficient in the light of recent changes, the factors to take into account and common pitfalls to avoid.
Dividends:
· Types
· Requirements/conditions
· Tax/NICs treatment (for both the employer and director/shareholder)
· Potential pitfalls
Payroll
· Minimum salary/bonus (factors to consider)
· Tax/NICs treatment (for both the employer and director/shareholder)
· Potential pitfalls
Comparison
· Factors to be considered
· Tax/NICs efficiency (with examples)
· How Croner-i can help you to advise your clients on profit extraction
Martin Jackson ATT
Martin is a Lead Technical Writer at Croner-i Tax.
He specialises in employment taxes and is Product Champion for Tax Tools.
Martin has over 30 years’ experience in employment taxes, having started as a National Insurance Inspector before moving to the Institute of Payroll and Pensions Management (now the Chartered Institute of Payroll Professionals) where he represented employers on a variety of government consultation committees.
Martin joined Croner-i in 2019, having spent the previous 15 years as an adviser and team leader with the Tax & Payroll Advice Lines in our sister company, Croner Taxwise.
