Wednesday, September 21, 2011

Keep on Saving

As promised here are some simple tips to make sure you take all the tax breaks open to you.



  1. Ensure that you are taking the money out of your business in as tax efficient a manner as possible. Taking money out of a limited company by a combination of salary and dividend can give a better tax result than salary alone. There are other strategies that give even better results.

  2. If you don't operate as a limited company consider whether you would save money if you did. There is often still a fairly big advantage in operating as a company, in terms of what you get to keep in your bank.

  3. Pay your spouse a tax efficient salary. As long as a salary can be justified, in terms of the work done, and it is actuallly paid, this is a good way to use tax allowances etc that would otherwise be wasted.

  4. Alternatively consider taking your spouse into partnership. Again providing the spouse's share is justified and there is a "real" partnership it is a good way to maximise tax allowances and bands.

  5. The tax savings that can be made by investing in pensions are still substantial. As long as the traps are avoided there are still large amounts to be saved. I appreciate that not everybody finds this type of investment attractive but we will all need a pension in retirement.

Thats probably enough to be going on with at the moment. More soon.



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