LEWIS & CO
A short history of current tax advice
How can you reduce your taxes?
If you are self employed then you pay Income Tax and National Insurance. This is cheaper
than being employed but still more expensive than being in a partnership and even more so if you use your own limited company.
A very important point about being self employed is that you pay tax on your profits not your drawings.
If however you have your own limited company, you get taxed on your profits at a lower rate, but you also get to decide what
your drawings are for Child Tax Credit purposes.
Reduced drawings means higher Child Tax Credits and this can make a big difference to your overall taxes.
The same applies for student grants. You can replace your childs student loan with a free grant if your income is low enough.
If you are self employed, then you have no options. If you have your own limited company, you decide what your earnings are.
Lower earnings means higher free student grants.
Do you want to know more? - See the example link below.