Best Accountants in Glenrothes

Check out our latest blog: How to pay yourself from your construction company As the director of a construction business in a limited company structure, you naturally want to pay yourself a decent wage. You may choose a salary, dividends, or a combination of the two. It’s common for directors to pay themselves the most tax-efficient salary and top it up with dividends. Each approach has different tax obligations, both for you personally and for your business. Many company directors find that the combination of a low salary and dividends is the most tax-efficient way to pay themselves. However, a dividend paid from a business that is not in profit can be risky, as it is classed as a director’s loan for which the director is personally liable. If your construction firm is doing well, then taking dividends to top up your salary is generally a good idea. But in times of economic uncertainty, or if your firm is struggling, then you could find yourself on a dangerous path. Read on for Empowered by Cloud’s guide on the best way to pay yourself as a company director in 2024/25. For tailored advice on how to pay yourself and the various tax implications, then please make an enquiry.