In company annual accounts what do the following mean: shareholders fund, directors remuneration?
Answer:
The money allocated to shareholders based upon their percentage stake and profits made by the company.
The directors remuneration is the salary of the owners. What you have been paying yourself basically.
Monkey Harris pretty much summed it all up. Cheers!
You can pay yourself a percentage of the profits know as a dividend. This saves on National Insurance. So in effect you can pay yourself a £3000 dividend (which will show in the Shareholders fund ) and a normal wage of only £500 you would only pay National Insurance on the £500 . Instead of Income tax you pay Corporation tax on your dividends at the end of the year. It is a more tax efficient way to get paid. all shareholders have to be allocated the same amount per share. Hope that makes sense.
Directors fee, certain percentage of the profit is kept aside for distribution to the shareholders.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers: