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.
Corporate and Personal Tax Planning
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.