Reply to: Reducing Corp Tax

[Old Greg]

Pay yourself an extra 100k salary.

[worzelGummidge]

Or just put it in a pension like any sensible person.

[worzelGummidge]

Buy some laptops and er.. loose them on ebay.

[BigBadBob]

My corp tax for the next year is going to be around £20k. Any suggestions on how I can reduce it?

That's easy, I nearly managed to negate CT along with a few interim colleagues of mine thanks to a rather nifty piece of corporate tax planning - pm for further info.

<admin note>Have unlocked PM use on your account. Feel free to share tax planning with us all though </admin note>

[BolshieBastard]

Deffo willy-waving here!

Yep, she knows all about willie waving and artificial means to attempt increasing penile size (she told me so herself! Said he's a ladyboy 'down there' and was accutely embarrassed when everyone in the changing room saw how small his todger really is!)

[louie]

Anything that reduces your profit will reduce your Corp Tax, so expenses are the way to go. Only if they are wholly used by the company of course.

[tractor]

...

You could try taking on a couple of data grunts and pay them min wage

[psychocandy]

Income shifting is more around the use of splitting shares with your partner so that both parties get dividend income. Here, DeludedAussie just suggests paying a family member a non-commercial wage for work they don't do to achieve an overall reduction in tax. I suspect this approach wouldn't pass the first PAYE compliance visit.

Of course, you're right. Either way its not cool.

[northernladuk]

Is that really a serious suggestion about using parents?

Not being funny but doing this would leave you wide open to income shifting issues with HMRC. Different for spouse since the Arctic case but NOT for other family members.

Just more of the same useless pap that deluded comes out with. You will get used to it after awhile

[Greg@CapitalCity]

Not being funny but doing this would leave you wide open to income shifting issues with HMRC. Different for spouse since the Arctic case but NOT for other family members.

Income shifting is more around the use of splitting shares with your partner so that both parties get dividend income. Here, DeludedAussie just suggests paying a family member a non-commercial wage for work they don't do to achieve an overall reduction in tax. I suspect this approach wouldn't pass the first PAYE compliance visit.

[psychocandy]

There are quite a few things that can be done

for example are your parents still alive? If so then put them through as employees - Or alternatively open a new company with them as shareholders and directors and you as employee

That way they can take out a 10K salary each and pay you 7K as expenses

There are plenty of ways to structure your affairs to minimse the tax - Its a shame that people who visit this forum always suggest to speak to an accountant (the majoirty of which are simple bean counters)

Is that really a serious suggestion about using parents?

Not being funny but doing this would leave you wide open to income shifting issues with HMRC. Different for spouse since the Arctic case but NOT for other family members.

[psychocandy]

Aaah! Your'e just boasting again!

Deffo willy-waving here!

[psychocandy]

Pay a lump sum into a pension (SIPP).

WHS +1

[malvolio]

There are quite a few things that can be done

for example are your parents still alive? If so then put them through as employees - Or alternatively open a new company with them as shareholders and directors and you as employee

That way they can take out a 10K salary each and pay you 7K as expenses

There are plenty of ways to structure your affairs to minimse the tax - Its a shame that people who visit this forum always suggest to speak to an accountant (the majoirty of which are simple bean counters)

But bean counters who know the law - unlike you.

I suggest you go away and look up "Connected Persons" and S660a.

[Scrag Meister]

Pay a lump sum into a pension (SIPP).

WFBS was my immediate idea, as much as poss without shafting your warchest.
Buying a new laptop/PC/Office Equipment/Going on a course or similar was the next.

But really MF AYCOTBAC.