Accounting Journal

Accounting Journal

Paying sufficient salary to get a qualifying year for state pension purposes

Jan 14, 2026
∙ Paid

There are various ways in which profits can be extracted from a personal or family company. A popular and tax-efficient extraction strategy is to pay a small salary and to extract further profits as dividends as long as the company has sufficient retained profits.

One of the advantages of paying a salary is to secure a qualifying year for state pension a…

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