Private Company with cash and Tax Planning

Private Company with cash and Tax Planning

Didn't find your answer?

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

Replies (2)

Please login or register to join the discussion.

avatar
By Gary Hornby
13th Dec 2014 10:02

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?

 

Thanks (1)
avatar
By NO Tax
13th Dec 2014 20:16

Thanks Gary for the reply, most companies are paying mileage allowance at the 45p, which tax free benefits do u mean?

Yes, most companies are paying their spouse and any family members they can.

Some of the Directors have full pension pots and others aren't interested in putting anymore into their pots.

I have explained its not a bad thing to pay the additional tax but ofcourse clients are reluctant to pay anymore tax than necessary.

I appreciate your points, have u ever closed the company and made all employees redundant and taking advantage of the tax free up to £30k? Then to setup a new company and start again?

Thanks (0)