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Using A Company To Save Tax

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Using A Company To Save Tax

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Using a company could easily save you over £10,000 in tax every year...possibly over £40,000. Why?

Firstly, UK corporation tax rates are much lower than income tax rates. Secondly, company owners can pay themselves dividends, which are taxed much less heavily than other forms of income. They can also split their income with their spouse or partner which often produces a lower tax bill. Finally, as a company owner, you have complete control over how much income you withdraw in total. This gives you significant control over your personal tax bill, allowing you to avoid the extortionate tax rates that kick in when income exceeds £41,865, £50,000, £100,000 or £150,000. Sole traders cannot control their income tax bills in this way. This plain English tax guide tells you everything you need to know about the tax benefits of running your business through a company and contains numerous examples and tax-planning tips.

Using a Company to Save Tax

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