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Limited company tax planning /personal tax planning 2010-21011

18th Nov 2011
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Email out: 18/11/2011:

Good morning to you and I do hope that this email finds you in good health.

What you are asking of both myself and bookkeeper is extensive and is dependent on you as much as it depends on me.

Salary:

You should from fiscal tax year 06042011 now be drawing a salary of £589:00 per month from the Limited company 1bank account as we previously arranged.

(During the Christmas break I will send you, like last year PAYE payslips.)

£589:00 per month gives you a reduced HMRC corporation tax bill of £589 pm  x 12m x 21%/20% = £1448.94 and so therefore it is vital that you maintain this monthly discipline of salary withdrawals.

Dividends:

These are cash drawn from limited company bank accounts being over and above the £589 per month provided the limited company bank account is in credit (I am sure that it is.)

Directors loan

I must also take account of other personal payments drawn from the limited company which can give you a personal tax liability.   

Limited company 1

I must have your limited company number 1 bank account fully analysed for both payments/receipts from the end date of its first accounting year end (that is 31102010) to 31102011 (its second company year end.)

To this effect I have forwarded to bookkeeper bank analysis skeletons and I expect it will take him/her more than a week to complete this analysis.

We are due to have a meeting today to put the wheels in place followed by a further meeting in two weeks time at which the analysis should be completed.

Limited company 2

Similar work must be completed for this company as it is now trades and similar skeleton bank analysis work of payments/receipts must be completed. 

Also, you must work with bookkeeper to complete this analysis for both bank payments/receipts as only you will know the nature of the bank withdrawals and receipts.

Other Companies:

Barry: You must let me know if any of the other ltd companies are now trading and if so, their start date of trading together with information regarding whether you have begin to draw dividends/other personal monies from any of these limited companies.

Fees: Finally, I must let you know (as it would be unfair otherwise) that I will be charging fees for this work but do not know how much until all work is completed.

It depends on how many of these companies are now trading and how much analysis work I must complete after bookkeeper Cole has completed his part of the work.

My regards

David Barry

www.davidbarryaccountants.co.uk

02082527018/07877671423

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