We've all heard of them, the "new" way to reduce how much tax each of us pay each month or each year. There always seems to be some "exciting" scheme that comes out that promises exactly this.
Working in my sector, I hear way too many stories about how people have been sold a plan which frankly relied on such a convoluted process that Einstein himself would have struggled to unwind and understand it.
Acronyms like EFURBS and EBTs are often thrown around by advisers as "legal" ways to reduce some element of taxation.
Firstly, I hate to be the bearer of bad news, but frankly most of these are absolute rubbish, or even worse - flat out scams.
Getting profit out of your business (without losing a whole packet of tax) can be a challenge but with a little knowledge and a little planning, any business owner can maximise the amount of their profit that they can get out of their business both legally and efficiently.
Using the combination of both salary and dividends is something that many business owners are familiar with. This is the general advice that most owners receive from their advisers as it has traditionally been the most efficient OBVIOUS method.
With all the changes to the tax rules in the last few years, this strategy, while still a solid one, needs to be reassessed on an annual basis to ensure that it remains tax efficient. Using the tax free allowances that we are provided with by HMRC yearly, a salary & dividends strategy is robust.
SALARY - This strategy should be fairly familiar to everyone, as generally all people who are working receive a salary. This is far and away the most obvious, and common, way to get paid from your business.
What milestones really matter to business owners in Britain right now? We wanted to find out so we decided to run an online survey to find out. We got 1000 business owners to tell us what are the more important milestone(s) to them and we've collated the results here.