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Extraction of Company Profits

Considerable tax savings can be achieved by structuring the means of extracting monies from your company

Shareholders can only extract profits by way of dividends.

A dividend can only be paid when the company can demonstrate that profits have been made as it is against the Company's Act to make a dividend distribution when profits do not exist.

At the time a dividend is paid appropriate dividend documentation needs to be completed which should be provided to each shareholder. No tax is payable at the time the dividend payment is made to shareholders but the company will need to account for tax on its profits at a later date. The shareholder will need to report dividends on his or her Tax Return which may give rise to additional liabilities.

No employee or employer National Insurance Contributions are payable on dividends.

Directors can obtain monies from companies via additional bonuses or salary which gives rise to additional PAYE and National Insurance. Directors therefore should extract any money they may have loaned to the company by way of directors loan account before considering the taxable routes. Interest may be charged to the company on the director's loan.

Directors and employees should examine their benefits package and pension contributions as tax efficient methods of acquiring funds.

If any person sells an asset to a company, e.g. goodwill, a computer or a motor vehicle, they are entitled to be paid for it. This may assist in extracting funds.

Morris & Co have a dedicated team specialising in VAT and ophthalmic accounts and are able to provide advice and guidance on all aspects of financial accounting, taxation including partial exemption & business matters.

For a FREE no obligation chat about your circumstances Contact Desirie Lea on 0151 348 8400 or email


  • "Over a number of years Morris & Co have provided me with sound financial and business advice. Their in depth knowledge of my particular sector has proved invaluable and they explain my accounts in a way that is easy to understand. All my questions are answered promptly and efficiently and I really appreciate their level of expertise."
    David Evans, R T Booth & Co Ltd
  • "When appointing an accountant it was very important to me to select someone who was not only knowledgeable but friendly and approachable. I have always received proactive, professional advice and I know that the specialist advice I require to run my business is only ever a phone call away. A VAT full cost and apportionment calculation was recently undertaken for my company. As a result of this, my percentages have reduced, thereby saving me additional money."
    Ian McGarvey, Ian McGarvey Opticians Ltd
  • "Having had dealings with Desirie Lea of Morris and Co from the very inception of my company, I have always been impressed with how approachable everyone has been, from the partners to the receptionists. I had spoken to several accountants before instructing Desirie to take charge of my accounts, and from the first phonecall, Desirie impressed me with her forthright manner and her perceptive analysis of various scenarios I put to her. She is always on the ball and is a pleasure to deal with."
    Lloyd Griffiths, Lloyd Griffiths Limited
  • "Desirie and her team have been acting on my behalf since 2002 and I am delighted with the service they provide. As specialists in the ophthalmic sector, they are able to take away the stress of dealing with the partial exemption calculations for VAT purposes, which is a real bonus. I have regular meetings with them at my premises to discuss strategic issues and plan for the future. Management accounts are prepared on a quarterly basis for my company which includes a detailed analysis/commentary of my trading results. I would have no hesitation in recommending the services of Morris and Co to my fellow professionals."
    Anne O'Loan, Niluain Ltd

Contact Desirie Lea on:

0151 348 8400 or email for a FREE no-obligation discussion and for information about how we can assist you in maximising your tax relief.