This solution allows a UK trading company to reward Directors or more key employees with a discretionary bonus with no to minimal PAYE and NIC and provides the company with a full corporation tax deduction of the Bonus awarded
Significant reduction in corporation tax liability;
Income Tax free bonus to directors or key employee;
Can be used to clear Overdrawn Directors Loan Account;
Can be implemented up to nine months after the company’s year-end;
Allows for significant retention of company cash assets;
Tax savings can be utilised immediately;
Recover tax already paid in relation to previous Corporation Tax and Overdrawn directors loan accounts;
Use the money for any purposes;
Frequently Asked Questions (FAQ)
How Long Does The Planning Take To Implement?
Once we are in receipt of the information and documentation requested in the engagement letters, the Strategy can be implemented in approximately 3 meetings over one month provided that the directors and shareholders of the Company are available for board meetings.
Can my Accountant do this planning?
This planning is only available to the PracticePro accountants network. Unless your accountant is part of PracticePro they will not be able to offer this to you.
Is this legal ?
This Planning complies to all HMRC legislation and has their full approval.
Sounds too good to be true so it must be…
Many small business owners think this way as their advisers don’t have the in-house expertise to bring it to their attention. Just look at Amazon, Google, McDonald’s, Starbucks….The list goes on
Is this one of those Tax avoidance schemes I’ve heard about.
This planning uses legislation how it intended to be used by parliament do not a DOTAS tax avoidance scheme you hear about. In fact we get the planning pre approved by HMRC
Can The Strategy Be Used To Reward More Than One Director?
Yes, there is no limit to the number of directors who can benefit.
Does The Planning To The Have To Be done Prior To The Company’s Year End?
Yes and No. For income tax benefits the planning must be done prior to the companies Year end. However, for Corporation tax we can claim back previous Tax years
What happens if the shareholders want to sell the Company in the future?
The planning will not affect have any effect on the due diligence process when selling the business. If anything the Business valuation will be higher due to an improved cash flow