Tax legislation changes on an annual basis; in recent years there have been significant changes in the way dividends are taxed. The most common methods of drawing remuneration or profits from a limited company are:
Depending on your personal circumstances, it may be tax efficient to draw out money using a combination some or all of these methods, and the exact mix may change from year to year.
Other factors in your personal circumstances can also play a key part in the tax efficiency of drawing funds from a limited company including:
With the change to making tax digital just around the corner, it remains to be seen how things will evolve but one certainty is that without proper planning you may fall foul of an increasingly complex tax regime.
Contact our Legal Sector Partner, Andy Poole on 07828 857830 or firstname.lastname@example.org to discuss how we can help you.
What is it?
Bespoke tax efficient remuneration and profit extraction planning that is bespoke to the individual shareholder’s personal circumstances and needs.
Who is it for?
All shareholders within a company structure.
What are the benefits for you?
What do I have to do?
You will need to provide us with the following information:
What are the deliverables?
You will receive a bespoke communication on the options available and our conclusion, together with justifications for our recommendation.
What is the cost?
There are several pricing options available and we always confirm with you before commencing work what the basis for our fees will be. Commonly, this is undertaken either on an hourly rate or fixed fee basis. The benefit to you of a fixed fee is that it provides you with certainty.
How long will it take?
This work can be completed within approximately 8 weeks of confirming the engagement. Depending on your accounting period end, we usually schedule this work to take place between January and the end of March each year.