Quick Answer
There is no single profit figure where it always makes sense, but the question becomes worth asking somewhere around the point where your profits comfortably exceed what you…
There is no single profit figure where it always makes sense, but the question becomes worth asking somewhere around the point where your profits comfortably exceed what you need to draw for living costs. Above that, retaining profit in a company and drawing a mix of salary and dividends can be more tax-efficient.
It is not purely a tax decision though. A company means Companies House filings, public accounts, director responsibilities and more administration. We will model both and give you an honest view, including when the answer is to stay as you are.
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