Posts Tagged: tax preparation

Tax-Efficient Profits Extraction

Tax-Efficient Profits Extraction

Extracting profits from a company in a tax-efficient manner is a complex but important task for company owners. Factors such as business type, activities, size, and family shareholders, alongside available profits, play a significant role in determining the best approach. (Read Time: Approx. 4 minutes) Topics Discussed: Basics of Profit Extraction For individual companies with… Read more »

Tax Traps of Different Classes of Shares in Family Companies

Shares in Family Companies

Creating new share classes in a family company can be a strategic way to split income among family members, but it comes with its own set of tax considerations. This week, we look at the key tax consequences, anti-avoidance provisions, and statutory requirements involved in such a process. (Read Time: Approx. 3 minutes) Topics Discussed:… Read more »

Cheap Mortgage from Your Company?

Mortgage Company

HMRC has delivered an unexpected yet advantageous update for shareholders. With the official rate of interest (ORI) for employee loans remaining remarkably low, there’s a unique window for savvy financial planning. Discover how leveraging company funds can significantly reduce your personal mortgage costs. (Read Time: Approx. 3 minutes) Topics Discussed: Take Advantage of Low Interest… Read more »

Clever way to utilise your pensions annual allowance

pensions annual allowance

Understanding how to effectively use your pension’s annual allowance, especially in a tax year without earnings, can significantly impact your retirement savings. With changes in the annual allowance from £40,000 to £60,000 in 2023/24, it’s crucial to grasp the importance of pension contributions and the benefits they offer. (Read Time: Approx. 3 minutes) Topics Discussed:… Read more »

Dividends V Bonuses – Which will save Tax?

Dividends Bonuses

After the Corporation Tax rate increased from 19% to 25% in April 2023, the longstanding preference for dividends over bonuses is up for debate. This shift necessitates a deeper exploration into which form of profit distribution—dividends or bonuses—provides better tax efficiency under current tax regulations. (Read Time: Approx. 4 minutes) Topics Discussed: Understanding Dividends and… Read more »

Tax Efficient Professional Will Drafting

Will Drafting

Drafting a will goes beyond the simple division of assets—it’s a crucial decision that significantly impacts the financial legacy you leave behind. Particularly, it affects how much Inheritance Tax (IHT) your heirs might have to pay. Engaging a professional solicitor ensures that your will is legally sound but also drafted to maximise tax efficiency, thereby… Read more »

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Tax Credits on Commercial Property Ownership

Tax Credits

Capital allowances offer significant tax advantages for commercial property investors, allowing for tax credits and refunds based on embedded fixtures and fittings. By enabling businesses to deduct these costs from their taxable profits, capital allowances reduce tax liabilities and release funds for reinvestment. In this Friday Tax Tip, we discuss what Capital Allowances are, how… Read more »

Everything You Need to Know About Inheritance Tax

Inheritance Tax

Managing Inheritance Tax (IHT) can be challenging. With the right strategies, however, it’s possible to significantly mitigate the impact of this tax on your estate before and after you pass. This guide offers detailed insights and practical advice on how to reduce your IHT liability, ensuring your wealth is protected and passed on according to… Read more »

Tax Advantages of Charity Registration

Charity Registration

With over 165,000 registered charities, it prompts a significant question for any prospective charity: Is the pursuit of registered status the right path for us? This decision involves considering your company’s values, as well as your ability to understand and apply strict regulations. (Read Time: Approx. 4 minutes) Topics Discussed: Charity Registration: To Be or… Read more »

Should I put my buy-to-let properties into a limited company?

buy-to-let properties

This week, we’ve had an interesting question regarding by-to-let property management, and with permission of those who submitted, we’ve our answer with you. Remember, email us at info@taxexpert.co.uk with any of your burning questions, and we’ll get back to you. (Read Time: Approx. 3 minutes) Topics Discussed: Exploring the Benefits and Costs of Incorporating Buy-to-Let… Read more »