Free of Charge – An extra £28,800 take home pay for our clients!
Our Client
A successful Limited Company, making profits of £250,000 per annum, and owned by three (unrelated) directors/shareholders. Each director was drawing a salary of £60,000 per annum.
The Problem
The directors were unaware that the large amounts of tax and National Insurance they were paying each year on their salaries could be reduced by simply restructuring their remuneration policy.
Our Solution
We advised the directors to begin taking the bulk of their income in dividends from the business and restructured their income accordingly. We agreed reduced salary levels of £8,000 to ensure they made the most of their tax-free allowance, and increased dividends to £47,000.
The Result
This meant that without taking any more money out of the business, the directors’ net take home pay increased by £800 per month, or an additional £9,600 tax free per annum.
