Help needed to save on tax

xeine

Hi All,

Im newly registered to this site although I have viewed many times now, apologies if I have placed this in wrong section also.

I'm currently in the process of taking over a company. My salary will double to £60,000 per annum and I have noticed the tax and National Insurance I will pay will be astronomical. I will also be Director and shareholder.

I don't currently have ISAs or any other tax saving relief funds nor does my wife and we have no savings for my 9 year old son. I haven't got a company car but would consider this if it would offer some tax relief.

Could anyone offer any advice on how to save on tax in my current situation?

There are four directors in total. The company profits are between £120,000 and £250,000 in the current credit crunch.

If I take my shares out annualy are there any benefits which would also save on tax?

Any advice would be greatly appreciated :-)

Regards

Ian

julesmum23

You would be very wise to see an accountant.

I am only a bookkeeper but suggest you look at dividends instead of salary

firstinflight

You could opt to take dividends on your shares instead of your entire salary, as these are taxed at a lower rate. However, this would probably need to be agreed with the other directors/shareholders.
It might also be possible to take payment in the form of company loan stock, and put some of your income under the capital gains tax regime, but you'd need a tax accountant to sort that out for you.
Getting a company car would be classed as a taxable benefit in kind, and would actually increase your tax bill. you'd need to compare the tax charge with the cost of running your own car, to see if it was worth it.