Dividend related query

[northernladuk]

Really NLUK, why do you feel the need to jump on every thread with a critical post?

I wonder....

I think you will find that salary vs. dividends is very relevant if your contract is ever deemed to be inside IR35. So if it can be done without incurring any extra tax then why not

Just taking divvies doesn't affect your IR35 status, but then I didn't say that did I.

I can't even begin to explain!

ps. don't bother answering. another neg will do fine, I seem to be collecting them from you.

I wonder why....

[ASB]

Would it not have made more sense to take this as a lump sum annual salary, or "bonus"?

Yes there would be 20% income tax but corporation tax is reduced equally, and salary is better than divvies from an IR35 perspective.

No NI due to being under £7072.

Fair point. Under the specific circumstances no NI required, the CT v income tax would make it overall equal.