Being a company owner, you likely have a personal vehicle or car Efficiently that you may or may not manage through your company. There are two common approaches for handling the business portion of private vehicle expenses: Own the Car Personally and Charge Mileage: You can own the car personally and charge your company at […]
Accounting and Finance
Tax-Efficient Strategies for Extracting Company Profits in the UK through salary
When it comes to extracting money from your company, a common approach is to take a small salary and the balance via dividend. Usually, company owners are advised to take a salary equal to the personal allowance, with the rest drawn as dividends. However, this isn’t always the most tax-efficient method. In the UK, determining […]
For anyone who owns or is considering acquiring trading premises or any commercial property, utilizing a Small Self-Administered Scheme (SSAS) can be a highly tax-efficient strategy. . Many business owners either hold their commercial property personally or within their company, but both approaches have significant drawbacks. Holding property within a trading company exposes the asset […]
Share buybacks could be a powerful tool if you’re not ready to sell your company to a third party but want to start stepping back from day-to-day operations. This strategy allows you to realize the value of your shares at the advantageous Business Asset Disposal Relief rate of 10% CGT. In essence, a company buyback […]
If you’re approaching a potential business exit planning within the next seven years, it’s essential to review your shareholding structure to ensure that you and your spouse can maximize the benefits of Business Asset Disposal Relief (BADR), formerly known as Entrepreneurs’ Relief. This relief reduces the Capital Gains Tax (CGT) rate on qualifying business disposals […]
When it comes to extracting money from your company, a common approach is to take a small salary and the balance via dividend. Usually, company owners are advised to take a salary equal to the personal allowance, with the rest drawn as dividends. However, this isn’t always the most tax-efficient method. In the UK, determining […]
Research and Development (R&D) Tax Credits are one of the most underutilized tax reliefs available to UK businesses. Introduced over two decades ago, these credits are designed to encourage companies to invest in innovation. Despite their potential, many businesses fail to claim R&D tax credits, either because they are unaware of their eligibility or because […]
Inheritance Tax (IHT) is often overlooked in estate planning despite its significant impact on wealth transfer. In the UK, the current nil-rate band for IHT is £325,000 per individual (2024/2025). This means that any estate value exceeding £325,000 is subject to a 40% tax. For a married couple, the combined allowance is £650,000, which can […]
To maximize family tax efficiency as a business owner who has a family, make use of not only your personal allowance and that of your spouse, but also those of your children. Every individual in the UK, regardless of age, is entitled to a personal allowance, which for the 2024/2025 tax year stands at £12,570. […]
The United Kingdom’s fiscal landscape is poised for significant transformation in 2025, introducing a series of tax reforms with far-reaching implications for both businesses and individuals. This comprehensive analysis of the UK Tax Changes elucidates the forthcoming changes and their potential effects on various stakeholders. Employer’s National Insurance Contributions: A Steeper Climb Understanding the Increase […]