Dividends are usually taxed at a lower rate than a salary.

Therefore a contractor who is a shareholder of a private company should consider extracting profit by means of dividends,as opposed to paying the funds through the PAYE system.

However dividends do not count as pensionable earnings.

National minimum wage regulations must be satisfied by salary, not dividends; and the implications of the settlements legislation must be taken into account

Consideration of the IR35 rules and the reserves of the company must be given before withdrawing funds by declaring dividends.

We have the knowledge to help a contractor boost take-home pay by advising on the optimum dividend strategy