For the 2012-13 tax year we advise director/shareholders to take the following ‘optimum’ monthly amounts out of their personal company:
• Salary £624 a month
• Dividend £2,624 a month or £31,488 a year
This will mean that your company will now save Corporation Tax of £1,497 on the salary.
This gives a total amount of £38,976 from 6 April 2012 and you will pay no personal tax provided you have no other income.
You can of course take more from your company but each additional £1,000 of dividend taken will cost you £250 in personal tax up to the first £59,000 of net dividend. It becomes more complicated once your gross income exceeds £100,000 in a tax year because you start to lose your personal allowances.
Working from Home Allowance increased
In addition, the tax free working from home allowance is increased to £4 per week (from £3 a week in 2011/12). This amount can be paid in addition to the above amounts.