Tag Archives: TAX

Accounting Suggestions: Apply Dividend Rather Than Bonus To Help Save Tax

For the majority of Small to medium sized Companies, it’s pretty much a well-known strategy to make use of dividend rather than increased wages in order to reduce tax bill for the working investor. This kind of approach can be applied in instances where the reduced rate of business tax applies. The savings in this regard comes via the fact that NI is due on earned income but not dividends.