Now that the Chancellor promises a 15% Corporation Tax Rate, there is ENORMOUS benefit to going limited, if your proits exceed say £17,000 per annum.

A two spousal company with £10,000 of profits after spousal salaries of £20,000 (2 x £10,000) would save £1,400 of taxes. Say extra accountancy fees of £600 leave you a net £800 better off, once Corporation Tax rates reduce to 15%. After £10,000 of such profits, the tax advantage is £762.50 per £10,000 of profits. Note there are many other advantages to being Limited, including flexibility, limited liability and the ability to shift both profits and ownership to one’s tax advantage.

Tony Creed.

Leave a Reply

Your email address will not be published. Required fields are marked *