Tax Planning for Company Directors
Company directors juggle corporate tax and personal tax — salary, dividends, pensions, benefits and loan accounts all interact.
Introduction
Plan before the year end closes your options.
Salary and dividends
Salary runs through payroll with PAYE/NI; dividends are paid from post-tax distributable profits — never treat them as interchangeable without advice.
Pension contributions
Employer contributions can be tax-efficient when aligned with allowance rules and company cash — bespoke modelling required.
Director loan accounts
Track every movement: personal expenses through the company, informal withdrawals and repayments. Overdrawn DLAs can trigger tax charges if not managed.
Year-end review
Before the period ends, reconcile profit, CT, VAT, payroll, dividends proposed and any benefits — adjust while ledgers are still open.
Common mistakes
Declaring dividends without reserves, ignoring payroll, mingling personal bills and leaving planning to the final week.
How DepoTax can help
DepoTax coordinates director remuneration planning with statutory accounts and corporation tax filings.
Frequently asked questionsFAQ
Can I take dividends without profits?
Dividends should follow distributable reserves — unlawful dividends create personal risk.
Should pension be company or personal?
Depends on allowances and remuneration strategy — personalised advice matters.
Why review the director loan?
Overdrawn loans can trigger tax charges unless managed within rules.
Does DepoTax advise directors?
Yes — remuneration design with accounts and filings.
Related DepoTax services
Contact DepoTax for tailored advice.