Corporation Tax Mitigation

A rate of up to 23.75% Corporation Tax is payable on the profits of any company, yet much can be done to reduce this.

When trading via a limited company, a key objective is to reduce corporation tax as far as possible, then to extract these post-tax funds as tax effectively as possible.

It is essential to regularly review the way profits are extracted from your company and a solution would be to reward one or more key employees or directors with a discretionary bonus which suffers minimal PAYE and NIC and provides the company with a full corporation tax deduction. In addition, this solution provides mitigating personal tax on overdrawn directors' loan accounts.

Significant reduction in corporation tax liability

    Key Features:

    Significant reduction in corporation tax liability

    No physical cash required by the company to pay the bonus

    Can be used to clear an overdrawn directors loan account

    Can be implemented up to nine months after the companys year end

    Key Benefits:

    Allows for significant retention of company cash assets

    Income Tax savings enjoyed, as well as Corporation Tax savings

    Tax savings can be utilised immediately

    Recover tax already paid in relation to previous overdrawn loan accounts

    Remove companies from quarterly CT payment regimes

    Can improve company and personal cash flow position

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