Tax Advice

Sandy Dog
Sandy Dog MAAT, AAT Licensed Accountant Posts: 25 Dedicated contributor ? ? ?
I wondered if anyone might point me in the right direction.

I am studying business tax but from the text books I have they don't seem to give advice about the workings of structuring a business to minimise a person's total tax, simply the mechanics of calculating income, capital gains and corporation tax as well as national insurance contributions. I want to learn about how to structure a business for example by the sole owner of a limted company paying himself minimum wage and taking the profit after tax as dividends and what restrictions there are in drawing down funds from the business as drawings or as dividends on future projected profits.


  • payrollpro
    payrollpro Registered, FMAAT Posts: 427 Dedicated contributor ? ? ?

    You wont find that in business tax as it is a personal tax matter. The syllabus for BTAX covers just the above, CT, CGT and employers NIC as these are the taxes which apply to the company, ITAX covers the detailed VAT matters. When you get to PTAX then you see the manner in which employment/self employed/dividends etc are worked out and that gives the clues as to how to structure the business in a manner which maximises the net income possible.

    Payroll pro
  • Sandy Dog
    Sandy Dog MAAT, AAT Licensed Accountant Posts: 25 Dedicated contributor ? ? ?
    Thanks Payroll pro

    I understand what you are saying. I studied PTAX first and couldn't make the link with BTAX.

    I have now actually found a guide book published by Tax Cafe titled "Using a Company to Save Tax" which I am part way through reading which gives a good overview of what I was looking for with a few worked examples.
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