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Tax efficient methods for extracting income

Alexander Accountancy Tax advice Burton upon Trent

Tax efficient methods for extracting income 

The vast majority of business owners work long and hard to ensure their companies are successful.

Many sacrifices are made along the way and the risks that people take to go it alone should be commended and financially rewarded. Alexander Accountancy offer free expert tax planning advice that covers a wide range of options. This ensures business owners pay the least amount of tax legally required and maximises their income.

Listed below are just a few of the tools that should be utilised to ensure you and your company are tax efficient:

Company Payroll

A company payroll should be used to pay the director and any family members that work within the business. This will utilise any personal tax allowance, and in turn reduce the company’s corporation tax and also the director’s personal tax. Used in the correct way this can reduce the tax bill by around £2,000 per person.

Company Shareholding

Structuring the shareholding of a company in the correct way will utilise an individual’s dividend allowance which can reduce personal tax from 20% to 7.5% for basic rate tax payers.

Pensions

The company can also pay into a pension scheme for the Director’s with the current annual allowance being £40,000. Money paid by the company into a pension scheme will save 19% in corporation tax and boost the Directors pension provisions.

Alexander Accountancy provides a free comprehensive tax planning service which helps people increase their income and reduce their tax liability. For further advice, call us now on Burton 01283 743851 or email info@alexander-accountancy.co.uk and see how we can help you.