“What’s the Most Tax-Efficient Way to Take Money Out?”
This is one of the most common questions directors ask.
But it’s the wrong starting point.
The problem usually isn’t how money is taken out —
It’s when, and why.
Where Cash Extraction Goes Wrong
1. Salary Decisions Ignore the Bigger Picture
Salary affects pensions, PRSI history, and future reliefs — not just take-home pay.
2. Dividends Feel Cheap Until Everything Is Added Up
Company tax + personal tax often surprises people after the fact.
3. Pensions Are Left Until “Later”
Pensions work best when planned early.
Left late, they become restrictive rather than powerful.
4. Cash Is Pulled When the Business Still Needs It
Extracting cash too early weakens growth capacity.
The Better Question to Ask
Instead of “What’s cheapest?”, ask:
“What outcome am I funding — today, later, or at exit?”
Cash extraction decisions link the business to personal wealth.
That bridge doesn’t build itself.
Contact George Skelton, Tax Partner at RDA Accountants, to discuss your situation in detail and craft a tailored exit strategy:
Email: gskelton@rda.ie
Phone: +353 539170507
Website: rda.ie