Business Tips And Help

Published / Last Updated on 13/08/2014

Business Tips

Could your pension be the best subsidiary company you ever have?

You and your company are an efficient Tax Collector for the Government.  When you make profits

  • You pay Corporation Tax (if a Limited Company)
  • You pay Income Tax if you are a Director of this Company
  • You may pay Income tax on Dividends paid to you
  • If you are a partnership or sole trader you may pay income tax on profits
  • Both Directors and Partners and Self Employed may pay Employers National Insurance Contributions, Employees National Insurance Contributions for staff as well as your own National Insurance Contributions 
  • When you retire you may pay Capital Gains Tax on disposal of the business
  • When you die your estate may pay Inheritance Tax

Why not set up a Tax Privileged Subsidiary Company?

The contributions to this 'The Subsidiary' company will be a deductible item as a business expense and allowable against Corporation Tax or Income Tax.

'The Subsidiary' pays no National Insurance Contributions.

'The Subsidiary' may be able to make loans to your business and if your business is a Limited Company,

'The Subsidiary' can also buy shares in the business.

'The Subsidiary' can purchase commercial property for business expansion.  The rent from the commercial premises is then invested back into the company with no liability to tax - but your business can claim the rent as a business expense

'The Subsidiary' will pay no capital gains tax if you sell the property for a profit.

'The Subsidiary' will pay no capital gains tax when you retire.

'The Subsidiary' is normally free of Inheritance Tax (except after age 75) if you die. 

'The Subsidiary' will also pay part of its value to you on retirement as a Tax free lump sum.

'The Subsidiary' is not liable to National Insurance Contributions.

'The Subsidiary' is protected from your creditors in the event of the main business going into receivership.

'The Subsidiary' will work for you 24 hours a day, 7 days a week for a trivial salary.

'The Subsidiary' will not moan and it will not want any other benefits apart from the occasional pay rise that you will give it when you decide.

'The Subsidiary' will resign when you tell it to and then pay you an income for the rest of your life. 

This is what a pension scheme could do for you. These types of pension scheme do require help to establish. 

Request expert business advice today.


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