UK Tax - share your experience guys
- Thread starter ORM
- Start date
ginawright
Newbie
- Aug 18, 2014
- 15
- 0
An accountant will usually only tell you how to mitigate your tax through the usual methods and the most popular one is a small salary plus dividends. HMRC are now looking at this closely as it has been abused, just as LLPs have and in particular the transfer of goodwill after a certain period to a new ltd.co,which can then have the effect of wiping out a large proportion of your new companies tax bills.
in laymans terms.
There are plenty of legal ways of reducing your tax bill if you are a Director earning at least 100k p.a and this is pure avoidance, not evasion.
Forget the Gary Barlow,Jimmy Carr cases,they were not set up correctly as they both (from memory) infringed the IR35 rules but there are a number of schemes that don't fall foul and whilst HMRC will probably get around to closing them (when they finally figure out how they work), we could be 4/5 years down the line.
In a nutshell,speak to an accountant who is a Chartered Tax Adviser as not all of them are. For anyone earning 100k a year,you should be looking at retaining at least 85% of that income legally and compliantly.
in laymans terms.
There are plenty of legal ways of reducing your tax bill if you are a Director earning at least 100k p.a and this is pure avoidance, not evasion.
Forget the Gary Barlow,Jimmy Carr cases,they were not set up correctly as they both (from memory) infringed the IR35 rules but there are a number of schemes that don't fall foul and whilst HMRC will probably get around to closing them (when they finally figure out how they work), we could be 4/5 years down the line.
In a nutshell,speak to an accountant who is a Chartered Tax Adviser as not all of them are. For anyone earning 100k a year,you should be looking at retaining at least 85% of that income legally and compliantly.