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    Salary versus dividend

    Considerations

    Salary: Recognized as an expense to the company (saves 23% corporate tax), but liable for national insurance and high tax rates.

    dividend

    Dividend: not recognized as an expense, but only liable for 25%-30% tax and not National Insurance. The optimum: a combination of both.

    Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.