Hi all, any additional ideas welcome, we have a number of Private Limited Companies that are cash rich and we would like the Directors who are the shareholders to take out these funds in the most tax efficient way.
Currently all Companies paying the Directors a wage just above the LEL for NIC and the reminder of Basic Rate Allowance taken as Dividend taking them right up to the 40% bracket. Company also sending an Annual lump sum to Pension.
All Companies have between £100k and £200k Taxable Profits and are gaining Cash Year on Year.
Most of the Directors have enough in their Pensions and would like another Strategy to withdraw these funds and ofcourse in a Tax efficient way.
Apologies for the length of this post but can't find anything other than what we are doing, and if any pointers need to be paid for, please send me a contact, many thanks in advance
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Some thoughts...
1) Presumably you have reviewed a list of all tax-free benefits?
2) Presumably you have considered income splitting with spouse and/or other family members?
3) Presumably the directors actually do have "enough" in their pension pots?
4) Presumably you have explained that paying higher rate tax is not a crime?