Commentary

B9.133 Extraction of cash from companies—summary of effect on company and individual

Business tax
Business tax | Commentary

B9.133 Extraction of cash from companies—summary of effect on company and individual

Business tax | Commentary

B9.133 Extraction of cash from companies—summary of effect on company and individual

See also the commentary in B9.102.

Effect on companyEffect on individual
Earnings eg: salary, bonusEmployers NICs
Corporation tax relief
Obligation to apply PAYE
Income tax
Employee's NICs
DividendsNo tax relief
Only payable out of 'distributable profits'
Income tax
Loan to directorsTax payable to HMRC*
(*repayable when loan repaid)
Employer's NICs on notional interest
Formal reporting obligations
Income tax on notional interest
Taxable benefits in kindEmployer's NICs
Corporation tax relief
Formal reporting obligations
Income tax
Exempt benefits in kindEmployer's NICs
Corporation tax relief
Formal reporting obligations
Tax-free
Interest on Director's loan accountCorporation

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