Director Bonus

[adnanub]

Can director of a company can take the bonus?

[innocentdevil]

Can director of a company can take the bonus?

Direction, an employee, should be able to.

[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

[nnj10]

Do you pay tax on bonus?

[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.

[John]

accountant is saying director can only take dividend not bonus.

Utter rubbish! Of course a Director can take a bonus.

[adnanub]

Thanks all I get the point

[hemalay]

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