Some toast in midsummer to celebrate that there is only half the year left until Christmas. It’s a bit of a stretch, but when October draws to a close, it’s that much less of a stretch to think a little bit about the future. And by future we mean planning to maximize the K10 and dividend of your own limited company.
So at the end of the year there is always a lot to think about as an entrepreneur. It’s not just all the hassle of Christmas celebrations, dinners and parties, but also financial statements and dividend deadlines. Anders Nilsson, tax specialist Wint automated accounting service, lists a lot of things to think about before the end of the year.
Maximize your salary
The first and most important thing is to think about your income. It is possible to plan income smartly as an entrepreneur because you are in control of your salary every month.
Setting a maximum salary cap each month is a good start, then you can make sure to adjust your salary at different levels, depending on how you want to maximize your income.
In 2021, the maximum annual salary is 537,200 SEK to only have to pay the municipal tax. This means around 44,750 SEK per month. If you take out a salary that exceeds that amount, you tax an additional 20% on each crown of state tax.
If you can imagine having a monthly salary that is no more than 44,750, but still want to make more money over the course of the year, you can make another withdrawal, and that’s for you with the public limited companies a stock dividend. We’ll see how it works a bit later. Because there are more ways of thinking. If you want to go deeper, you can use K10.nu, which Wint has created for you who want to be able to calculate your dividend yourself.
Or think about social coverage!
Planning your salary doesn’t always mean you don’t want to pay taxes. Maybe instead, you, as an entrepreneur, want the best retirement income or the best social insurance coverage possible. Life unfolds in different phases and at some point it may be important for you to find an income which, for example, maximizes your parental allowance.
If you withdraw 380,800 SEK in 2021, you have reached the highest income qualifying for sickness benefit. This means that if you are on sick leave you will receive the maximum payment.
If you withdraw SEK 476,000 in annual salary instead, you have the possibility of receiving the highest possible parental benefit income.
And with those two sums, you also end up under state tax.
But if you are looking to the future and want to maximize your pensionable income, you need to withdraw a salary of SEK 550,374 in 2021. Then you will surely cross the threshold for public tax, but the future will be brighter.
Take the right salary – plan your dividend!
If you decide to take a salary that falls under state tax, you can still get more money. Then it’s time for a stock dividend. Up to a certain amount, your stock dividend is estimated at 20%. This ultimately means that you get a higher annual salary.
The amount of your limit amount this year is calculated based on two different rules, the simplification rule and the main rule, where the simplification rule is based on a standard amount and the main rule takes into account the salary you have selected. But yes, it is quite complicated.
This is why Wint built k10.nu, which you can use to calculate your good salary if you want to maximize your dividend.
Good year! (Something in advance!)
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