Director wants to pay himself through a service company

Director wants to pay himself through a service...

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I have a client who wants to know how to pay himself the most tax efficiently.

He is the sole director of a company which is owns 10% of the share capital.

He wants to know how best to pay himself the most tax efficiently.

He has prejudge the outcome somewhat in that he has set up another company (effectively a service company) which is charging the company he only owns 10% of.

If he was an individual employee he presumably would be captured by IR35 and presumably he would also be captured by IR35 as a director assuming he was allowed to contemplate this method in the first place.

Any thoughts would be gratefully received.

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