Most readers will be familiar with the idea that paying a salary to your spouse (or other family members) can be very tax-efficient if:
1. they are not otherwise fully utilising their tax-free allowance/lower tax bands; and
2. they do real work to justify the salary,
otherwise HM Revenue and Customs will try to disallow the business expenditure.
Using bonuses to reduce a business tax bill is a well-known procedure. It is also easy to get wrong!
The April issue of Business Tax Insider is out today and Lee Sharpe looks at planning using bonuses, including the timing of such payments for tax purposes.
It is a very handy strategy to have up your sleeve to lower your business taxes and extract cash efficiently from your company.
As part of our 'three-free-issue' Business Tax Insider trial, you'll get this strategy plus 10 more delivered to your doorstep.
Go here to learn more:
>> Using Bonuses To Extract Cash From Companies
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