Director bonus?

[ct81]

Sorry if this sounds like a daft question but...

I have been running my Ltd company for nearly a year now and havent taken a wage. I am wondering what the deal with bonuses are? Can I just take money out as a bonus?

Any information on this area would be gratefully received.

Thanks

[Joyous]

Bonuses are treated the same as salary for tax and NI purposes so they’re probably not the most efficient way to extract funds from your company. If there are available profits you should consider paying yourself a dividend, tax will be payable but no national insurance.

There are other factors to consider before making your final decision so you should speak to your accountant.

Regards


Joy