Help & Advice
Dividends
Owners of smaller private companies are usually the shareholders and directors. They can then choose how to withdraw funds. Currently dividends are the most tax efficient method.
For 2022/23 the first £2,000 is tax-free. The rates are then:
- 8.75% if part of the basic rate income tax band.
- 33.75% if part of the higher rate income tax band, and
- 39.3 % on the excess.