…. incorporate. The tax rates being what they are now, no matter how much you’re earning, it’s more tax efficient being a limited company (as opposed to Sole Trader/Partnership). You can save lots of tax by paying yourself with a mixture of dividends and salary. As an individual, you have a tax-free allowance of £11,500 (rising to £11,850 from April 2018) per year, which if you don’t use you lose. A salary of this amount is a good way to use this allowance combined with the rest of your income being taken as dividends. Depending on your tax bracket the first £5,000 (reducing to £2,000 in April 2018) you take in dividends may not be subject to tax. S4B have a wonderful free app which can help you calculate what percentage of tax you would pay in each scenario at a click of a button. Please click on the icons below to download your free S4B app. You will find the calculator in the Calculator section along with lots of other very useful information . S4B are a team of Profit Consultants and Chartered Accountants in Maidenhead committed to putting the client first. If you would like to see how we can help you contact one of the S4B Team at [email protected] or call us on 01628 623444.