Tax planning - Corporation Tax (CT)
Companies pay tax at 12.5% compared to the higher Income tax rates payable if your business is not incorporated.It makes sense to operate a profitable business through a company not only to take advantage of the low CT rate but also to take advantage of other tax planning possibilities.
However, extracting profits from a company invariably presents itself as an issue that needs to be addressed.
We advise our clients of the strategies available to reduce their tax burden.
Tax planning in downturn
Utilise losses fully and on time: current year trading losses can be earned back and set against the trading profits of the previous year. Rental losses can be set against the prior year's rental profit.
Change of year-end: this can be useful in maximising the amount of losses that can be claimed by the company.
Write Down of Trading Stock: of particular relevance to developers and site and work in progress valuations should be reviewed.
Taking Assets and Cash out of Companies: with current low values, it may be an ideal time to take assets out into personal ownership perhaps by liquidating the company. Click here for more information
Protecting Valuable Assets held in Trading Companies
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Tax planning considerations for owner/directors of limited companies
Ensure suitable financing arrangements
Ensure appropriate business ownership structures
Ensure tax efficient profit extraction arrangements
Ensure tax deductible business expenses are fully claimed
Ensure tax credits for Research and Development (R&D) Expenditure is obtained
Consider setting up & contributing to a company pension scheme.
Consider setting up a Small Self Administered Pension Schemes (SSAS).
Setting up a self directed pension scheme to invest in equities, bonds and funds of your choice.
We provide tax advice on pension planning and the set up of an SSAS
Investing in property through your pension.
Small Self Administered Pension Schemes (SSAS) can be used to purchase properties selected for retirement investment purposes and can offer significant tax savings for the directors of limited companies.
Pension contributions by the company to the SSAS are fully tax deductible.
Rental income and gains within the SSAP are tax exempt, for property investments made in Ireland or The UK.
