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  • FIRST POST
    • jusnbek
    • By jusnbek 9th Nov 19, 8:26 PM
    • 4Posts
    • 0Thanks
    jusnbek
    Financial Advice required for Owner of Limited Liability Companyr
    • #1
    • 9th Nov 19, 8:26 PM
    Financial Advice required for Owner of Limited Liability Companyr 9th Nov 19 at 8:26 PM
    Hello,
    We would like some sound financial planning advice please.
    We would like to invest/ some money each month for my future self and partner.
    We am own a Limited Liability company and would like to optimise the amount of money i can take out without incurring prohibitive tax bills.
    The company employs both myself and my partner and is our sole income.There are funds in the company at the moment.
    We do not have a pension or any savings currently.
    I am 44, my partner 37 *cough*
    ISA's, pension, shares, bonds, etc - we are game for whatever is the best option.
    We have done a risk questionnaire - I am a high risk taker - my partner is the opposite.
    Thankyou
Page 1
    • LHW99
    • By LHW99 9th Nov 19, 8:59 PM
    • 2,243 Posts
    • 2,089 Thanks
    LHW99
    • #2
    • 9th Nov 19, 8:59 PM
    • #2
    • 9th Nov 19, 8:59 PM
    Are you also both directors of the company? If so, the company can pay up to 40,000 pa into a pension for each of you. you don't get tax back from HMRC, but the company would save on its corporation tax. Have you asked your accountant what would be most efficient?
    • Marcon
    • By Marcon 9th Nov 19, 11:54 PM
    • 1,350 Posts
    • 1,058 Thanks
    Marcon
    • #3
    • 9th Nov 19, 11:54 PM
    • #3
    • 9th Nov 19, 11:54 PM
    We would like some sound financial planning advice please.
    Originally posted by jusnbek
    You'll get ideas and opinions here, but not sound financial planning advice. Nobody can give you that without knowing full details of your situation. Sounds like one for an IFA - could be an excellent investment and save some expensive mistakes.
    • jusnbek
    • By jusnbek 10th Nov 19, 6:59 AM
    • 4 Posts
    • 0 Thanks
    jusnbek
    • #4
    • 10th Nov 19, 6:59 AM
    • #4
    • 10th Nov 19, 6:59 AM
    OK thanks - are there any recommendations for good IFA's?
    • Aegis
    • By Aegis 10th Nov 19, 10:01 AM
    • 5,131 Posts
    • 3,471 Thanks
    Aegis
    • #5
    • 10th Nov 19, 10:01 AM
    • #5
    • 10th Nov 19, 10:01 AM
    OK thanks - are there any recommendations for good IFA's?
    Originally posted by jusnbek
    Where are you based? I might know someone in your area.
    I am an Independent Financial Adviser
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
    • jusnbek
    • By jusnbek 10th Nov 19, 11:30 AM
    • 4 Posts
    • 0 Thanks
    jusnbek
    • #6
    • 10th Nov 19, 11:30 AM
    • #6
    • 10th Nov 19, 11:30 AM
    In Lancashire near Preston
    • Aegis
    • By Aegis 10th Nov 19, 6:50 PM
    • 5,131 Posts
    • 3,471 Thanks
    Aegis
    • #7
    • 10th Nov 19, 6:50 PM
    • #7
    • 10th Nov 19, 6:50 PM
    In Lancashire near Preston
    Originally posted by jusnbek
    I can suggest someone in Leeds if you like?
    I am an Independent Financial Adviser
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
    • DairyQueen
    • By DairyQueen 11th Nov 19, 11:37 AM
    • 988 Posts
    • 1,763 Thanks
    DairyQueen
    • #8
    • 11th Nov 19, 11:37 AM
    • #8
    • 11th Nov 19, 11:37 AM
    Very generally....

    Typical remuneration for company directors/shareholders of own company is to pay themselves sufficient salary to qualify for NI credit but without paying NI. Also to use personal tax free allowance. For most this is just below the NI primary threshold (currently 719 per month).

    Pension rules allow you to pay up to the max of your earned income (or 40k, whichever is the greater) into a pension and receive tax relief. This apples whether or not you have paid income tax on the earned income.

    So, if each of you takes (say) 715p.m. in salary then you will not pay NI or income tax, will each qualify for a full year NI credit toward state pension, and will be able to claim tax relief at 20% on the full 715p.m. if you then pay it into a pension. This increases the pension contribution by 25%.

    The salary can also be offset against corporation tax thus saving another 19%.

    The balance of remuneration is usually sourced from dividends (again, for tax reasons).

    Additional pension contributions may be paid directly from your company account into the pension. These will count as 'employer's contributions' and, as has been said, can be offset against corporation tax but will not reduce your personal income tax liability. Nor will they be eligible for a tax uplift.

    The above may not be optimum for your circumstances so the advice of an accountant and IFA should be considered.

    Always ensure that you have an emergency cash fund of around 6 months expenses before making other savings/investments. This is your insurance against the unforeseen. After that, pensions are by far the best investment wrapper tax-wise, and especially for small limited company owners. Any investments held outside a pension should be ISA-wrapped as much as possible. Cash is currently best left unwrapped in order to receive the best retail interest rates. Income, dividend and savings tax allowances are all relevant to your circumstances and it will be to your advantage to understand them, and know how they relate to your situation.
    Last edited by DairyQueen; 11-11-2019 at 9:59 PM.
    • jusnbek
    • By jusnbek 12th Nov 19, 2:25 PM
    • 4 Posts
    • 0 Thanks
    jusnbek
    • #9
    • 12th Nov 19, 2:25 PM
    • #9
    • 12th Nov 19, 2:25 PM
    I can suggest someone in Leeds if you like?
    Originally posted by Aegis
    Sure, ill talk to them - thank you
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