How to take money out of a company without paying tax

Here is how you can extract £20,800 out of your limited company tax-free

• £8,788 Tax and NI free wages
• £3,712 tax-free dividends
• £12,500 personal allowance for 20/21 tax year
• £2,000 additional tax-free dividends
• £5,000 savings allowance if you charge your limited company interest (if you have loaned your limited company money)
• £1,000 interest allowance tax-free (again if you charge your company interest for directors loans)
• £300 tax-free gift vouchers
• £20,800 extracted from your limited company tax-free

Taking wages from a buy to let company structure

We will assume that you receive no other form of income in your personal name. You can take £8,788 (20/21 tax year). You will now need to run a payroll system and notify HMRC that you are now an employer. This, even though you are not paying tax / national insurance. If you take more than £116 per week (20/21) or its equivalent. You can do this by completing the HMRC form.