Co (Financial Management) Limited
Tax accountant Ringwood
Small business accountant in Ringwood, Hampshire & Dorset,
specialising in small businesses dealing with taxation, management and computer advice
How can I save tax?
To most businesses, tax is just another
cost that has to be borne just like rent and rates. Just like other
overheads you do have a choice in how much tax you pay.
In the recent tax law
case Artic Systems, the judge concurred
that a business can legitimately conduct their business in
ways to minimise its taxes and thus reduce costs. This is tax
avoidance not tax evasion.
Self employed v limited
Currently a sole trader or partner has
to pay 9% National Insurance on their net profits above £7,956 per
annum. A limited company does not have to pay National Insurance, it
can but it is not compulsory.
A director shareholder can pay themselves
£7,956 salary and take the remainder of their drawings as dividends.
The next £30,500 can be taken as tax free dividends. The tax
saving at this level is £2,700 each per annum.
Higher rate taxes
If a sole traders profits go above the basic
rate, they have to pay 40% to 45% higher rate Income Tax. A director
shareholder has the option of how much of these extra profits they
want to take and thus pay higher rate tax.
The limited company gives you tax options that are not available to
sole traders or partners.
|| Other tax saving options?|
There are legitimate ways to
reduce tax charges on company cars as well as other expenses. There
are options for family run businesses to reduce their overall taxes
and thus preserve more of the business for future generations.
Want to know more?
I provide specialist tax advice for small businesses, looking at your whole tax
position and taking into account the interaction of the different taxes, corporation
tax, income tax, national insurance, capital gains tax and even the effect of benefits
and allowances such as child tax credits.
I can show you the tax potential of changes to your business setup, for example how
you take money from your business or how you can build up your business value for a
later sale whilst minimising your tax liabilities.
I can also advise you what is legally allowed and what is not allowed regarding tax
and statutory legislation.
I am here to help you save tax while trying to
help you avoid problems before they happen. Sometimes you may just
want to chat over a decision you need to make and you need a second
opinion. Other times it is because I am telling you of tax changes
that might be suitable for you so we need to discuss them
What do you want to discuss?
Call or email me and let us talk about you and your business.
How much tax can you save as a limited company? Click here to find out
Lewis & Co (Financial Management) Limited - Chartered Accountants
Specialising in tax and business advice for small business
2 Southampton Road, Ringwood BH24 1HY