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Salary or dividend?

As the owner and director of your own company, you can choose how and when to extract funds from your company. As almost all the funds you take out will create a tax charge in your hands, you may want to leave a proportion of the money in the company until you really need it.

The tax charge you pay will depend on how your payment is categorised, such as salary, dividend, interest, rent or a loan. This article looks at the tax differences between extracting funds as a salary or a dividend.

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