A Director’s Loan Account (DLA) tracks all money moving between you and your company that is not explicitly classified as a salary, dividend, or legitimate business expense repayment. Because you and your limited company are separate legal entities, treating the company bank account as your own triggers strict HMRC tax rules. The Two States of … Continue reading
[Putting this out late in the tax year (we are in August!) because so many new businesses are being started post COVID-19 lockdown.] Most tax efficient salary for directors in 2020/21 is £8,788 per annum. This equates to £732 per month or £169 per week. You may top up with dividends. HOW IS THE TAX … Continue reading