@360.accounts: Salary or dividends – which would you choose as a director? It's one of the questions we're asked most often, and the answer is rarely black and white. Team Salary says: 👉 Regular income can make it easier to demonstrate earnings for mortgages and lending. 👉 Helps protect your entitlement to certain state benefits and your State Pension (if structured correctly). 👉 Predictable, simple and easy to budget around. Team Dividends says: 👉 No National Insurance on dividend payments. 👉 Can be more tax-efficient than salary in the right circumstances. 👉 Flexible – you can usually draw dividends when company profits allow. In reality, many director-shareholders benefit from a combination of both: a tax-efficient salary, topped up with dividends where appropriate. The right mix depends on your circumstances. Planning to apply for a mortgage? Reinvesting profits? Looking to minimise your overall tax bill? All of these can influence the best approach. So, which side are you on - salary, dividends, or a mix of both? Want to learn more? Email at [email protected] now! #wokingaccountant #surreyaccountant #guildfordaccountant #surreybusiness

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