Parker Business Development
Creating an edge for your Business
 

Tax Planning

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

 

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