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The incorporation of a business should be considered,
as this may save higher rate tax (currently 40%). Business
expenses and capital allowances should be claimed in full
where appropriate.
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As high Director's remuneration gives rise
to heavy national insurance contributions for a company,
it may be beneficial to pay dividends instead of extra
remuneration. But beware of the IR35 provisions for Personal
Service Companies in this respect. |
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It may be tax efficient to include as part
of the remuneration package a company car, interest-free
loan, company pension, etc. |
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It may be possible to reduce income
tax by making a gift or settlement and putting income
in the hands of those with smaller incomes than yourself.
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