Corporate and Personal Tax Planning

This solution allows a UK trading company to reward one or more key employees with a discretionary bonus with suffers minimal PAYE and NIC and provides the company with a full corporation tax deduction. In addition, this solutions provides mitigating personal tax on overdrawn directors’ loan accounts.

Key Features

  • Significant reduction in corporation tax liability
  • No physical cash required by the company to pay the bonus
  • Can be used to clear an overdrawn director’s loan account
  • Can be implemented up to nine months after the company’s year-end
  • Not affected by the general anti-abuse rule (“GAAR”) and
  • Non-DOTAS arrangement

Key Benefits

  • Allows for significant retention of company cash assets
  • Income Tax savings enjoyed, as well as Corporation Tax savings
  • Tax savings can be utilised immediately
  • Recover tax already paid in relation to previous overdrawn director loan accounts
  • Remove companies from quarterly CT payment regimes
  • Can improve company and personal cash flow position
  • Solution can be used with a renowned Lloyds of London syndicate

Contact our tax experts today for more information and to arrange a meeting.