- February 19, 2019
- Posted by: mardenco
- Category: Business (for printed use only)
The only thing about tax that we can rely on is that the code that underpins tax legislation is constantly changing.
As we approach the end of the 2018-19 tax year, now is the perfect time to take a hard look at the way in which you take personal remuneration from your business and see if there is a more effective strategy available for 2019-20.
Most small company owners have adopted a mix of low salary and high dividends as a way to keep Income Tax and NIC deductions to a minimum. Throw into this mix recent changes to benefits in kind legislation, changes to Income Tax rates and allowances, and other factors and opportunities to make further adjustments to remuneration packages for 2019-20 may open up.
The areas you could consider include:
• Balances on directors’ loans to or from your company. For example, could you charge interest on money you have loaned and utilise the personal savings allowance?
• Does your business have the use of your personal assets? Do you or could you charge a formal rent for the use of these assets?
• Is it time to revisit taxable benefits paid by your company? Is there a better way to extract value for your personal needs? For example, switching taxable benefits into one of the remaining tax-free benefits, pension provisioning perhaps?
Each individuals’ tax planning needs are to some extent unique, and therefore deserve individual attention. If you have not yet thought about your options for 2019-20 call now so that we can consider any new opportunities that may be available.