Maximising profit extraction from a family-owned company requires a balance between tax efficiency and compliance. Here are additional strategies beyond salaries and dividends: 1. Pension Contributions The company can contribute to directors’ pensions, reducing corporation tax while building long-term financial security. Contributions are tax-free for the director (within annual limits). 2. Rent Payments If you

If you leave the UK but remain a temporary non-resident for tax purposes, you may still be liable for UK tax on certain income and gains when you return. Here’s what you need to know: What is Temporary Non-Residence? You are considered temporarily non-resident if you leave the UK but return within five tax years.

When property is jointly owned, the way rental income and capital gains are taxed depends on the ownership structure. Income Tax on Rental Income Joint Tenants (50/50 split) – Income is automatically split equally between owners, regardless of actual contributions. Tenants in Common – Income is taxed based on ownership shares, which can be unequal.

Limited liability is a major advantage of running a company, protecting directors and shareholders from personal responsibility for business debts. However, this protection is not absolute—directors can still be held personally liable in certain situations. When Can Directors Be Personally Liable? Personal Guarantees – Directors often sign personal guarantees for loans, leases, or supplier agreements,

Selling a property to a housing association can have significant VAT implications, and understanding the correct treatment is crucial to avoid unexpected costs or compliance issues. Is the Sale Exempt or Zero-Rated? The VAT treatment depends on whether the property is: Newly built (less than three years old) – Generally zero-rated, meaning VAT is charged