Can I improve the setup?

[Jaimie]

Hi all,


I'm a newbie and would like an opinion and advice to improve my position.


I don't earn the big bucks people seem to talk of here but I live and work in the UK and invoice around £130,000 per year.


I control (and need) a UK Ltd company.


I pay myself £20k (before inc. tax and NHI) and most of my daily expenses are covered by my clients to whom I supply a service.


The gross profit, around £90k is subject to ct at 20% (£18,000) and the remaining dividend of £72k is paid to the shareholder, an IBC, so incurs no further UK tax liability.


The only director is a girl living in the Caribbean.


So corporate and personal taxation comes to around £24K


Simple question..........How can I reduce this figure further?


Jaimie

 

[fxstarter]

Im not sure if this also is possible with you but we got a advice from our tax man who told us to make partial loans from company to beneficial owner it was a simple process and we got it approved by the tax auth. in Spain it wasn't really not a problem.

 

[JohnLocke]

Jaimie said:
Hi all,
I'm a newbie and would like an opinion and advice to improve my position.


I don't earn the big bucks people seem to talk of here but I live and work in the UK and invoice around £130,000 per year.


I control (and need) a UK Ltd company.


I pay myself £20k (before inc. tax and NHI) and most of my daily expenses are covered by my clients to whom I supply a service.


The gross profit, around £90k is subject to ct at 20% (£18,000) and the remaining dividend of £72k is paid to the shareholder, an IBC, so incurs no further UK tax liability.


The only director is a girl living in the Caribbean.


So corporate and personal taxation comes to around £24K


Simple question..........How can I reduce this figure further?


Jaimie
Click to expand...

It is almost impossible to reduce it any further, you could let another Offshore IBC invoice your company for the rest of the profits in the company so you would not have to pay tax from it, however I would recommend you to speak with a local tax advisor as well.

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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​