DIVIDENDS: REDUCE THE TAX YOU PAY
Every UK resident individual can receive up to £5,000 of dividends tax free each year, whatever their marginal rate of tax. As a
company owner you could arrange for your family members to receive dividends from your company to take advantage of this.
Spreading dividend income in this way can reduce the tax you pay, if that income does not pass through your hands first. Dividends can also be used to help support your children through university.
The first step is to ensure your family members hold shares in your company which entitle them to receive dividends. You
can give those individuals some of your own shares if you already hold sufficient shares yourself. We can help your company issue more shares and different classes of shares as necessary.