We provide businesses with solutions that have technical
merit and are in line with business and strategic objectives.
There are four major taxes and they all interact with
each other. Nowhere is this truer than with the owner-managed
business where mitigation of one tax will impact on another
tax.
- Tax Efficient Remuneration
Have you ever thought what a difference it
would make to your tax bill if you could better structure the ways you
paid yourself? Here is an example:
There are two shareholders and directors working in a business.
Each receives a salary of £35,000 per year. Profits before salaries
total £80,000. In this real life example a total tax saving of £13,516
in total has been achieved by restructuring their personal remuneration.
As this saving is repeated every year they can expect a saving of £67,580
over five years.
- Tax Efficient Corporate Structure
Trading through a corporate structure
brings with it the benefits of limited liability. You are no longer personally
liable for your company’s
debts. This will also give you the opportunity to apply a “Tax
Efficient Remuneration” strategy (see Tax Efficient Remuneration).
The incorporation process will even allow you to value your business
and get paid for the goodwill value of your company at an effective tax
charge of only 10%. This can be done with minimal reduction in cash
flow and also gives you the opportunity to avoid higher rate tax for up
to several years depending on your circumstances.
- SSAS and Tax Free Heaven
Don’t let the name Small Self Administered
Pension Scheme put you off. It is still a pension scheme so there are
restrictions on taking
the money out. However this is a serious tax planning vehicle when used
properly. Here are some of the benefits:
Contributions into your SSAS
attract tax relief in your company at its marginal rate of tax, you
can also loan back money for commercial purposes
and so potentially make a contribution with minimal cash flow effect.
It
is also possible to invest in commercial property. In this way you
pay rent to yourself tax free whilst still obtaining a tax deduction
in your company. Additional benefits also exist by utilising the
options to purchase shares.
Tax planning with financial services products
Ad Hoc Tax Projects, transfer of value,
Share Buy Backs, CGT Planning
