Regardless of your age, everyone is entitled to personal allowances. If you cannot use your allowances during the tax year, you will waste them as they cannot be carried over!
You must arrange your affairs so that you can utilise your personal allowances, and so you transfer some of the assets to your spouse who does not have an income.
This should be an outright transfer in order to work. If your children have savings, you can register to receive interest without deduction of tax. This area is very complicated, so why not come and see us and we will take away the hassle!
Dividends or Renumeration
Renumeration salaries and bonuses are tax deductatable for corporation tax purposes, but they are subject to National Insurance employer contribution of 11.8%.
On the other hand, dividends are not tax deductible. But they are more tax effective.
Many directors take renumeration to enable them to get net relevant earnings to contribute the payment to their pension.
Under the new personal pension rules it is only necessary to have renumeration in one year then you can contribute the next 5 years with the same contribution.
For more information about this, or any of the services that Husco & Associates offer, please Contact Us.
