Tax Planning For Businesses
We have many years experience advising business owners on how to structure their business affairs in order to achieve the best possible tax result.
Some of the most important tax issues that should be addressed by all business owners at some point are detailed below:
How should I structure my business?
There are basically 3 different ways in which a business can be operated
- Sole Trader
- Partnership / LLP
- Limited Company
There are tax and commercial implications of each trading style. In certain circumstances, running a business as a Limited Company can provide substantial tax savings and commercial benefits.
We can talk you through the advantages and disadvantages of each trading style so that you can make an informed decision.
How should I take the profits out of my business?
For directors / shareholders of Limited Companies, there are a number of choices such as:
- Salary
- Dividends
- Pension contributions
- Benefits in kind
We can talk you through each of the options and explain the tax consequences with a view to putting you and your business in the optimum position.
If I sell my business, how much tax will I pay?
If you are planning to sell your business – either now or sometime in the future – one of your key concerns will be to ensure that you minimise the tax liability on any potential sale.
Depending on how a business sale is structured, the rate of tax can be anywhere between 10% and over 50%. It is therefore vital to take advice well in advance of a proposed sale to ensure that the best result is achieved.
In addition to the above, there are many other major tax issues facing business owners in the UK. If you would like to discuss your businesses tax position please contact us.
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