Extracting Company Profits 2021/22

Company owners wishing to extract profits from their companies as tax efficiently as possible face an array of conflicting and ever-changing factors. When companies make profits, there are a number of available methods for extracting funds, such as:

  • Remuneration for employees/directors (salary, bonuses, benefits etc.);
  • Distribute profits to their shareholders by way of dividends;
  • Company pension contributions;
  • Payment of rent (where the property is rented by a director/shareholder);
  • Interest (where loans have been made to the company);
  • Capital distributions; and
  • Private Investment Schemes.

This brief will aim to explore various methods in which profits can be extracted from a company by its shareholders and employees, and the tax implication of each of them.  Click here to view the briefing note in full.