Taxation of shareholding directors

If you’re a shareholding director, you need to keep an eye on ‘remuneration strategy’. This means making sure owner-managers of private limited companies are paying the lowest possible rate of tax.

We will take the time to review remuneration strategies with you and ensure you’re doing everything possible to take advantage of any schemes, allowances and reliefs that might apply.

If you’re a shareholding director of a limited company, the way you structure your finances and renumeration will be different to that of a regular employee.

It’s important that you draw sufficient remuneration to retain entitlement to state benefits. You also need to be aware that, by combining salary dividends and pension contributions, you can lower your effective rate of income tax.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual circumstances.

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