15/10/2021
The recent introduction by the chancellor of the health and social care levy at 1.25% increases the rate of tax on dividends by 1.25%, as well as national insurance contributions by employees and employers by the same amount.
So what’s a company director to do in a world where not only the business is affected but also their personal tax position?
Consider the following:
A pension contribution (although maybe not accessible for immediate use) is still a great way to extract profits with a lower effective tax burden.
Contact me if you would like to discuss your options going forward.