> change how dividend tax works
https://www.crunch.co.uk/blog/contractor-advice/2015/07/09/w...
IMHO, just get an accountant.
The general 'rule' is you tend to only take out as much as you need. It's usually smart to always use the lower rate tax bands and then decide what to do with the excess that is left in the company.
However, since they're increasing the tax rate, now might be good time to take out a higher dividend, since you'll pay more to take it out next year. If (tax now < tax later) -> take it out. :-) Unless you're wealthy enough to never have to declare dividends again, you'll want to take out more this year.
Also, don't forget to expense as much as you legally can. That's all tax deductible BEFORE corporate tax.
What can you do with the rest?
a. Invest it (compound interest: shares/bonds/property/etc)
b. Give yourself a loan from the company. You'll have to pay interest, but it's a relatively low rate (3.25% p/a I believe).
Wealthy people tend to be (relatively) poor in their personal name, but own a lot of stuff through companies - e.g. planes, boats, property.
I have a popular one, and they are rubbish.
If you do an average of 6 hours of work for each client each year, your accountant can serve 333 customers and bring in £100000 a year, making £50,000 in profit.
On the other hand if you automate heavily and get rid of all the customers who have complex needs or who are calling you a lot, so you do an average of 15 minutes work for each client each year, the same accountant can serve 8,000 customers and bring in £2,400,000 a year making £2,350,000 in profit.
I know how I'd run my accountancy business, if I had one!