Business Tax Planning | Makes Sense Accountants
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Business Tax Planning

What is Business Tax Planning and How Can Make Sense Help?

What are the two things you can’t avoid in life? Death and Taxes. Even death doesn’t get you out of paying taxes, part of probate is settling outstanding tax bills before your family get your assets.
We want to help you Make Sense of your Business Tax Planning. Here are some helpful tips, and if you want to learn more you can Contact Us

When should you start Tax Planning?

If you fit the following criteria, you should consider contacting us to help with your tax planning:

  • You’re setting up a company
  • Your company has become successful
  • Your children are old enough to receive a dividend

 

What Aspects of Tax Planning Should I Look Out For?

There are four areas of focus when it comes to Tax Planning, and they are:

  • Payroll
  • Pension
  • Shareholders
  • Expenses

 

All these areas can help you when it comes to Tax, whether it’s charging yourself the correct wage to not attract tax or NI contributions, or offsetting the correct expenses.

Make sure you’re in the know with one of the top accountants in Birmingham, Make Sense Accountants.

Payroll

Pay yourself a minimum salary which doesn’t attract tax or NI contributions and take the rest in dividends. (Assuming you are not caught by IR35).

Pension

You can take £40,000 per annum without tax or NI deductions (personal and company) and pay into a pension. This is invested for your retirement and you can’t access the funds until you are 55 years old. 25% can be withdrawn tax free at 55 and the rest used as an income for the rest of your life. (I can refer you to an IFA as you need to speak with financial adviser first).

Shareholders

Add your partner / spouse, children as shareholders and pay them a dividend. You must pick the right share class with no voting rights or else if you fall out, they would have a say in your company.

Expenses

It is important you offset the correct expenses for 2 reasons.

  • to make sure you are not paying tax on business expenses which are tax deductible.
  • you do not want to claim the wrong things or you will be building up a tax liability for the future.

There are many more legal ways to minimise your taxes and you should call us now for free initial consultation.

For more information contact us on

0121 356 2746