Using A Company to Save Tax – 2009 Update

Reading — By admin on June 24, 2009 at 11:02 pm

By running your business through a limited company you can save tens of thousands of pounds in tax and national insurance.

Why? To start with UK corporation tax rates are often much lower than income tax rates. Secondly, company owners can pay themselves dividends, which are taxed much less heavily than other forms of income. Finally, setting up a company with your spouse or partner allows you to split your income which almost always results in a lower tax bill.

That’s not all. Tax and national insurance increases announced in the April 2009 Budget mean using a company will produce even bigger tax savings in the years ahead!

This tax guide tells you everything you need to know about using a company to legally shelter your hard-earned money from the taxman. It is essential reading for:

All sole traders and partnerships.
Anyone with an existing company but wanting to pay less corporation tax, income tax and national insurance.
Anyone starting a business.
Anyone wanting to shelter from the increased tax rates coming in over the next couple of years.
Accountants who wish to advise their clients on the tax benefits of using a company.

Like all Taxcafe guides Using a Company to Save Tax is written in Plain English and contains numerous practical examples and tax planning tips. Topics covered include:

All the changes from the April 2009 Budget – the guide is completely up to date.
The clearest explanation of corporation tax you will find anywhere.
All the pros and cons of using a company.
Plain English comparison of company tax and sole trader/partnership tax.
How company owners can legally escape paying any national insurance.
How dividends can be used to cut your tax bill by thousands of pounds every year.
How to pay dividends correctly and avoid trouble from the taxman.
Detailed examples showing the exact amount of tax you can save by using a company.
How to save thousands more in tax by bringing your spouse or partner into the company.
Traps to look out for when involving your spouse.
The dangers of using more than one company.
How a company can produce massive additional tax savings when you reinvest profits.
A chapter detailing the tax and national insurance changes expected in 2010.
How to incorporate an existing business, including how to make sure you pay zero capital gains tax, VAT, and stamp duty.
When using a company is a bad idea and could result in a higher tax bill.
How to convert from a company back to being a sole trader or partnership.
The tax benefits and drawbacks of using an offshore company.

The guide also contains many useful tables which show the exact tax savings enjoyed by company owners at every profit level. These tables take account of ALL taxes: income tax, corporation tax, national insurance etc.

Using a Company to Save Tax – 2009 update edition