What Is The Most Tax-Efficient Way To Pay Yourself In 2016/17?
Owner-managers and contractors often pay themselves ina combination of salaries bonuses and dividends.
A common strategy is to draw a salary of around £8,000 while also extracting profits from the business as a dividend. A salary of £8,060 (for the 2015/16 tax year) preserves entitlement to the state pension and some benefits. It is also within the personal allowance and below the threshold for employer and employee national insurance contributions (NICs).