Outsourced Payroll Services; Salary Vs Dividends

Are you looking for Outsourced Payroll Services in the UK. Griffin Payroll offer

  • No minimum contract
  • Fixed affordable fees
  • Excellent Customer Service
  • Up to date with industry changes, including HMRC legislation
  • No startup costs
  • No employee leaver or starter costs

If the entire £28,000.00 Profit is taken as Dividend/Basic Salary (Incorporated)Salary Vs Dividends
£28,000.00 Gross Profit before taking a Basic Salary from it (Up to your tax free allowance)
£7,475.00 Salary taken from Gross Profit
£55.61 Employers NI taken from Gross Profit
£29.64 paid as Class 1 National Insurance Contributions on the Basic Salary (Employees NI)
£20,469.39 new Gross Profit declared
£4,093.88 Corporation Tax on Gross Company Profit
£16,375.51 Net Company Profit
£0.00 tax on £16,375.51 NET Dividend
£23,820.87 Total Take Home Pay from £28,000.00 Company Profits after all tax deductions
£4,179.13 Total Taxation
14.93% Total Tax (DIVIDEND)

Use the maximum amount of the £28,000.00 Profit to take a Directors Salary
(Salary + Employers NI must be less than Gross Profit)
£2,537.84 paid as Employers National Insurance
£25,462.16 New Profit figure (This will be the directors salary, as Employers NI is now paid)
£7,475.00 Personal Tax Free Allowance
£2,188.10 paid as Class 1 National Insurance (Employed NI)
£3,597.43 paid as Income Tax
£19,676.63 Net Income from £25,462.16 New Company Profits
£8,323.37 Total Taxation 29.73% Total Tax (FULL DIRECTORS SALARY)
Net Salary £19,676.63 (£25,462.16 GROSS SALARY from £28,000.00 GROSS PROFIT)

If the entire £28,000.00 Profit is taken as Sole Trader Profits
£28,000.00 Gross Company Profit before taking Salary
£7,475.00 Personal Tax Free Allowance
£130.00 paid as Weekly Self-Employed National Insurance Contribution
£1,869.75 paid as Class 4 National Insurance (Self-Employed NI)
£4,105.00 paid as Income Tax
£21,895.25 Net Income from £28,000.00 Company Profits
£6,104.75 Total Taxation
21.8% Total Tax (SOLE TRADER)

For Outsourced Payroll Services call Griffin Payroll on 01536 799 157

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