.png)
.png)
We act for a client who trades as a consultant through a limited company. The company is new and anticipates profits in excess of £125 000 in its first year. It does not have any employees save the client and his wife who are both directors.
Salaries of £12 000 and £5 000 respectively are paid to them and the balance is taken as dividends in an 80:20 ratio.
As this results in an additional 25% higher tax charge we advised the client to consider contributing to a personal pension and advised that tax relief on contributions paid by the company would be limited to an amount equivalent to the salary paid.
The client considers that the company could pay an employer’s contribution of £1 000 per month with another £12 000 being paid as a single premium top-up just before the financial year end.
His independent financial...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
