Sarah Bradford looks at the merits of extracting profits from a personal or family company in the form of salary or dividends.
A company is a separate legal entity distinct from the shareholders who own it. This means that where a business is operated through a personal or family company, the profits must be extracted if they are to be used personally outside the company.
There are various ways of extracting profits, including taking a salary and paying dividends. Here, we take a look at the tax implications of each.
However, it should be noted at the outset that these are not the only ways
