The tax system is complex – and it does not get any easier!!
Changes to the tax system from April 2023 make tax planning increasingly more problematic.
The corporation tax rate was 19% in 2022/23 – but from April 2023, it could be 19%, or 26.5% on some profits or 25%. Dividends taxable at 0% were £2000 last year but only £1000 this year. Sometimes the company can claim an employment allowance against employers’ national insurance and sometimes it can’t. The list goes on.
There are many scenarios – a recent question was “should a director take a salary from his company although he now draws state pension too – or should he take a dividend instead?”. There is no definitive answer to this question – and indeed much more information is needed before even coming up with a considered response.
Please be aware that there is no “one size fits all” response and every case needs to be considered based on the individual circumstances.
Call us now and we can highlight your options to minimise the tax position.
