Using a Company to Save Tax - Softcover

Hadnum, Lee

Softcover

ISBN 10: 1907302131 ISBN 13: 9781907302138

Publisher: Taxcafe UK Limited, 2010

Synopsis

By running your business through a limited company you can save tens of thousands of pounds in tax and national insurance.


Why? To start with UK corporation tax rates are often much lower than income tax rates. Secondly, company owners can pay themselves dividends, which are taxed much less heavily than other forms of income. Finally, setting up a company with your spouse or partner allows you to split your income which almost always results in a lower tax bill.


That's not all. Tax increases which came into force in April 2010 (plus others on the horizon) mean using a company will produce even bigger tax savings in the years ahead!


This tax guide tells you everything you need to know about using a company to legally shelter your hard-earned money from the taxman.


The guide is essential reading for:

• Anyone wanting to escape high income tax rates by using a company.


• All sole traders and partnership businesses.


• Existing company owners who want to pay less corporation tax, income tax and national insurance.


• Anyone starting a business.


• Accountants who wish to advise their clients on the tax benefits of using a company.

What Information is Contained in the Guide?


Like all Taxcafe guides Using a Company to Save Tax is written in Plain English and contains numerous practical examples and tax planning tips. Topics covered include:

• All tax changes from the March 2010 Budget Report and earlier Budgets.


• The clearest explanation of corporation tax you will find anywhere.


• All the pros and cons of using a company.


• Plain English comparison of company tax and sole trader/partnership tax.


• How company owners can legally escape paying any national insurance.


• How dividends can be used to cut your tax bill by thousands of pounds every year.


• How to pay dividends correctly and avoid trouble from the taxman.


• Detailed examples showing the exact amount of tax you can save by using a company.


• How to save thousands more in tax by bringing your spouse or partner into the company.


• Traps to look out for when involving your spouse.


• The dangers of using more than one company.


• How a company can produce massive additional tax savings when you reinvest profits.


• A chapter detailing the tax and national insurance changes expected in 2011.


• How to incorporate an existing business, including how to make sure you pay zero capital gains tax, VAT, and stamp duty.


• When using a company is a bad idea and could result in a higher tax bill.


• How to convert from a company back to being a sole trader or partnership.


• The tax benefits and drawbacks of using an offshore company.

The guide also contains many useful tables which show the exact tax savings enjoyed by company owners at every profit level. These tables take account of ALL taxes: income tax, corporation tax, national insurance etc.

About this title

About the Author

Lee Hadnum LLB ACA CTA is a rarity among tax advisers, having both legal and chartered accountancy qualifications. After qualifying as a prize winner in the Institute of Chartered Accountants entrance exams, Lee went on to become a Chartered Tax Adviser (CTA) and worked for Ernst & Young for several years. Lee is the author of several Taxcafe tax guides including Non-Resident & Offshore Tax Planning, Using a Company to Save Tax, The World's Best Tax Havens, The Investor's Tax Bible, Selling Your Business and Tax Saving Tactics for Non-Doms.

Edition details

• Publisher: Taxcafe UK Limited
• Publication date: 2010
• Language: English
• ISBN 10: 1907302131
• ISBN 13: 9781907302138
• Binding: Paperback
• Number of pages: 140