We understand the challenges faced by limited company owners when extracting cash from the business. Our experienced staff with a help of our Tax Calculators can guide you through this process.


In the UK, if business owners extract money as a salary, it is subject to income tax and National Insurance contributions. Dividends, on the other hand, are taxed at different rates, and are not subject to National Insurance contributions.

In the UK, you can only distribute dividends out of post-tax profits. This means if your company does not make a profit, you cannot pay dividends. Paying illegal dividends could result in personal liability for the directors.

Extracting too much cash can have detrimental effects on the financial stability of the company. It can limit the company’s ability to invest in growth or manage unexpected expenses.

If an owner extracts a significant amount of cash, it might make it more difficult to attract investors or secure loans. Investors and lenders often view retained earnings as a sign of a company’s financial stability.


A common strategy in the UK is to pay a small salary that makes use of the personal allowance (the amount you can earn before you start paying income tax) and to take the rest of your income as dividends. Dividends are taxed at lower rates than income and are not subject to National Insurance contributions, making this a tax-efficient strategy.

Your company can make pension contributions on your behalf. These are usually allowable business expenses, so your company won’t have to pay Corporation Tax on them.

A director’s loan can be a tax-efficient method of extracting cash if managed correctly. However, there are complex rules around their use, including potential tax charges if the loan is not repaid within nine months of the company’s year-end.

These are non-cash benefits that the company provides, such as a company car or private medical insurance. They could be a tax-efficient way of extracting value from the company, but they are subject to their own set of tax rules.

Why work with us?

We believe in personalised service, understanding each client’s unique circumstances, providing tailored solutions, timely service, and peace of mind. Navigate the Cash Extraction landscape with confidence.