Its about paying less tax. Dividends are paid after 19% CT. For salary after £732 the company pays 13.8% NI and after £797 the employee also pays 12% NI so if just paying 13.8% you will pay less tax on that salary than divs but after you will pay more.
If the company is eligible then Employment allowance can be claimed removing the 13.8% Employer NI liability as well I think.
If the company is eligible then Employment allowance can be claimed removing the 13.8% Employer NI liability as well I think.
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