Tax Breaks for Directors
A Tips & Advice book about...
In a nutshell
This book is a must-read for all directors that want to pay less tax - legitimately. It explains how you can take full advantage of the available tax breaks. It shows all the options, so you can make the right choice for your situation. This new edition includes all the latest changes to the tax and NI rules, so you're sure to have the latest information to hand.
Regularly reviewing your remuneration package for tax efficiency should be high on your “to do” list as a director. This book brings all the tax breaks within easy reach, giving you a clear overview of the various reliefs you can safely benefit from, including:
- Salary, dividends and benefits
- Employer-supported childcare
- The employment expenses exemption
- Salary sacrifice arrangements
- Using your home for business
- Income shifting
- Company cars
- Saving for your retirement
- Selling your company
Written in plain English, this book enables you to choose the tax-reducing strategies that best suit your personal situation. Simple, safe, secure.
We've created this Tips & Advice book especially for...
Company directors/shareholders that want to:
- Keep their tax bill as low as possible
- Get a clear view on the various available tax breaks
Financial advisors and accountants that want to:
- Help clients choose the most appropriate tax-saving strategy for their situation
In this Tips & Advice Book you'll read about...
Part 1 - Directors only
1. Compensation for being a director
1.2. What form of compensation?
1.3. Directors’ fees
1.4. Tax relief for the company
2. The higher tax rate regime
2.1. Basic rules - tax rates and allowances
2.2. How to maximise tax efficiency on income?
3. Your salary
3.2. Directors’ salary and the NMW and NLW
3.3. Low salaries
3.4. Higher salaries
3.5. What to put on your tax return?
3.6. How much tax will you pay?
4. Directors’ bonuses
4.2. What to put on your tax return?
4.3. What’s the NI cost?
4.4. At what rate will your bonus be taxed?
4.5. Deferring a bonus
4.6. Not drawing the cash
5. Company cars
5.2. Ownership and choice of the car
5.3. What to put on your tax return?
5.4. Contributing to car purchase to reduce tax
5.5. Contributing to car running costs to reduce tax
5.6. Optional extras
5.7. Car fuel
5.8. Second company car
5.9. Classic cars
5.10. Vans and double cab pick-ups
6. Using company assets
6.2. What to put on your tax return?
6.3. Examples of using company assets
7. Loans to directors
7.2. How do you set up a company loan?
7.3. What to put on your tax return?
7.4. How much tax will you pay?
7.5. Alternative calculation
7.6. Your company’s tax position
8. Medical bills and insurance
8.2. What’s covered?
8.3. What to put on your tax return?
8.4. How much tax is payable?
8.5. When will you be taxed on medical expenses?
9.2. How do you set up a childcare scheme?
9.3. Are there restrictions or financial upper limits?
9.4. What to put on your tax return?
9.5. How much tax is payable?
9.6. The Tax-Free Childcare scheme
10.2. Exempt expenses
10.3. Advances for expenses
11. Working from home
11.2. The £6 tax-free allowance
11.3. Where no homeworking allowance is paid
11.4. Renting a room to your company
11.5. Claiming the cost of home broadband etc.
11.6. Homeworking business rates
11.7. Using your garage
12. Pension contributions
12.2. Company contributions
12.3. Carry-forward relief
Part 2 - Director shareholders
13.2. The tax break dividend
13.3. Higher rate dividends
13.4. Deferring higher rate tax
13.5. Waiving higher rate tax
13.6. Diverting dividends to save tax
13.7. Tax return entries
14. Tax-efficient salaries
14.2. Tax break - mixing salary and dividends
14.3. National minimum or living wage
14.4. Family salaries
14.5. Spouse’s salary - specific issues
14.6. Spouse’s pension contribution
14.7. Teen wages
15. Director’s loan account
15.2. Charging expenses
15.3. Charging interest on a DLA
15.4. Overdrawn loan accounts
15.5. Keeping loan account records
16. Director as the company’s landlord
16.2. Charging rent
16.3. Entries on your tax return
16.4. Expenses you can deduct from the rent
16.5. Renting example
16.6. Recovering VAT
16.7. Special 10% CGT tax break
16.8. Selling your property to your company
17. NI breaks
17.2. Current NI rates
17.3. Royalties and licence fees
17.4. Director sells assets to company
18. Building up a pension fund
18.2. How much can you put in?
18.3. Carry-forward relief
18.4. Pension fund invests in company
19. Restructuring shares
19.2. Acquiring more shares
19.3. Transferring shares
19.4. Shares to spouse/civil partner
19.5. Shares to other family members
19.6. Share buy-back
19.7. Funding a share buy-back
20. Inheritance tax breaks
20.2. Keeping below the IHT threshold
20.3. Two nil rate bands for spouses
20.4. Business property relief
20.5. Transferring shares during your lifetime
20.6. Shares you transfer on death
20.7. Unwanted shares
20.8. Planning points for your will
21. Selling your company
21.2. Timing the sale
21.3. Sale of assets and trade
21.4. Selling your shares instead
21.5. The inheritance tax angle
21.6. Useful warranties and indemnities
21.7. Entrepreneurs’ relief (ER)
21.8. Before you dispose of your shares
21.9. Associated disposal
22. Year-end planning for directors
22.1. Why is timing important?
22.2. That 5 April date
22.3. Key dates for your company
22.4. When will your company get a tax deduction?
The Scottish income tax rates
Company car benefit
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