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Director Bonus
Posted: Tue Apr 17, 2012 11:08 pm
by adnanub
Can director of a company can take the bonus?
Re: Director Bonus
Posted: Wed Apr 18, 2012 10:11 am
by innocentdevil
adnanub wrote:Can director of a company can take the bonus?
Direction, an employee, should be able to.
Re: Director Bonus
Posted: Wed Apr 18, 2012 2:35 pm
by adnanub
Thanks but accountant is saying director can only take dividend not bonus. My question is the director bonus can be included in the earning is acceptable? Can seniors comments on this please
Posted: Wed Apr 18, 2012 8:21 pm
by nnj10
Do you pay tax on bonus?
Posted: Wed Apr 18, 2012 8:32 pm
by innocentdevil
as far as I understand, firstly you need to find out whether you are employed or self employed. have you named your self as an employee as a director can be an employee.
secondly, if you pay yourself a bonus but after tax then that can be counted towards application. anything you pay tax on can be counted towards gross salary and relative points.
Posted: Wed Apr 18, 2012 8:54 pm
by John
accountant is saying director can only take dividend not bonus.
Utter rubbish! Of course a Director can take a bonus.
Posted: Wed Apr 18, 2012 9:19 pm
by adnanub
Thanks all I get the point
Posted: Thu Apr 19, 2012 9:50 am
by hemalay
John wrote:accountant is saying director can only take dividend not bonus.
Utter rubbish! Of course a Director can take a bonus.
Bonus is taxed under PAYE scheme (with salary). If director takes bonus from company its just a form of salary and taxable.
Director cannot take dividends only shareholder take dividends and you are probably shareholder as well.
You are probably not quoting you accountant correctly. He advised you to take dividend because dividends are taxed at lower rates then salary/bonus when you take account of all taxes and national insurances.
p.s I am qualified accountant