What is the most tax-efficient way to take money out of my company?

For most owner-managers, the starting point is a salary up to the National Insurance threshold, which preserves NIC credits without triggering significant employer or employee NIC, with additional income taken as dividends. However, the optimal position depends on your total income, the company’s corporation tax position, your pension position and what the money is for. Pension contributions are particularly powerful as they are deductible against corporation tax and build retirement savings simultaneously. We review remuneration structures annually.