Trivial benefits have their own tax exemption, which if used wisely can be used to treat employees. The exemption can also be used by personal and family companies as part of a tax-efficient profit extraction strategy. Nature of the exemption The exemption applies if all of the following conditions are met: The cost of providing […]
A popular profit extraction strategy is to pay a small salary and to extract further profits as dividends. Why pay a salary? There are a number of benefits of paying a small salary in order to take money out of a personal or family company for personal use. Reason 1 If a salary is paid
If you have a personal or family company, taking dividends is a popular and tax-efficient way to extract profits. However, while they remain tax efficient, recent tax changes have eroded some of the advantages. What do you need to know when planning your dividend extraction strategy for 2023/24? Impact of corporation tax changes From 1
In March last year, the government published a White Paper setting out its final position on reforming Companies House ahead of introducing legislation. The big headline from the reforms is that micro and small companies will have to report profit and loss statements i.e. the option to file โfilletedโ accounts is to be removed. Some
Tax repayment claims are usually made via the submission of a tax return. The time limit for amending a return (whether individual or company) is usually one year from the deadline for submitting the tax return. If that date has passed, a claim can only be made via an overpayment relief claim. Under this relief,
