02 June 2023

The salary-dividend mix

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

  1. When did the main corporation tax rate increase?

  2. What is the corporation tax rate for companies with profit over £250,000?

  3. At which level of taxable profit does marginal relief apply?

  4. How much higher are dividend rates now than in 2021/22?

  5. On an annual salary of between £9,100 and £12,570, at what rate does a company pay national insurance?

  6. What is the total national insurance liability on an annual salary of £12,570 per year?

  7. Which of the following statements is correct? Statement 1, a bonus is taxable if paid wholly and exclusively for the purposes of the business, or statement 2, a bonus is taxable if paid within six months of the end of the accounting period

  8. On what date is a salary usually taxable?

  9. When is it more efficient for a company to pay dividends rather than salaries?

  10. Which of the following statements is correct? Statement 1, if an employee is not a UK resident during the salary period, the salary may not be taxable in the UK, or statement 2, if an employee is not a UK resident during the salary period, the salary is taxable in both the UK and the country of residence

1 Unit