Dividends – Some pitfalls

Many directors of SME companies take both a salary and dividend from the company with salaries set at a tax effective level. This is accepted to HMRC and should not give cause for concern.  The salary itself should be treated in the normal way via the payroll system and normally is.

However with dividends it’s a different story. And here problems start to arise. Not only from a compliance perspective but also because of tax issues arising. Continue reading

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