Taking money out of a LTD company

I have a Ltd company which is making a (very) small profit. It has two directors, no employees. I'm also a full time PAYE employee.

What is the most efficient way to take money out of the company? Register as an employee and draw a salary or take it as dividends?

Gloomtastic!

Without talking to a professional, the most efficient way of taking money out is to put it into a pension for the directors. But you'll probably need to talk to a professional about that.

FocusST

I think there are limits to pension contributions relative to salary. I don't believe you can't just funnel cash out into a pension and forego salary entirely. As Above, check with a reputable professional.

onedmc

If you take money out you have to pay income tax. We don't have a lesser dividend tax like the UK.

As far as I know, you can only put a % of income into a pension but you would need advice on that.

The simplest way is to clock up expenses, phone, internet, car mileage, and even that very interesting conference in Florida.

mneylon

Talk to an accountant.

You can do a certain amount with pensions for sure, but there might be limits. It also depends how much money we're talking about - is it 5 figures a year or 6? Is it always profitable?

Be careful with running stuff through expenses - unless it's legitimate you can run afoul of Revenue rules