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Confessions of a Recovering MLM Junkie
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pension planning. Extracting profits out of the company as
dividends rather than salary means that there will be no
"net relevant earnings" and therefore pension contributions
can't be made. But the advent of stakeholder pension plans
has meant that contributions up to œ3,600 per year can be
made without the need for any earnings. If a person does not
wish to transfer funds in existing plans into stakeholder
because of high charges, there is a way out: the best net
relevant earnings (i.e. salary) in five consecutive years
can be used for making contributions for the next five
years, even if there were no salaries in the remainder four
years. It is comforting to know that entitlement to basic
state pension is not affected by taking a salary from the
company at the level of a person's personal allowances i.e.
œ4,615.
Furthermore, an individual may decide not to bother with
pension plans and instead invest in ISA. Often, these can be
more efficient than pensions but that's beside the scope of
this article. If that option is taken, no salary is
necessary.
Another factor is business motoring. It might be tax
advantageous for an unincorporated business that owns many
Affiliate Programs - Rags To RichesRags to Riches with Affiliate Programs. If you do not know what an affiliate program is, it is simply the process of merchants paying you ..... cars not to incorporate because if these cars have some
private use there will be benefits in kind taxed on the
users. These are generally higher than the straight
apportionment between private and business for all car
running costs in the case of sole traders.
The conclusion is that there can be considerable tax savings
waiting the sole trader who decides to go down the
road to incorporation. But, one needs to proceed with
caution and careful planning. And don't forget the biggest
advantage of incorporation, which is Protection
from Personal Liability. Incorporating is one of the best
ways to protect a business owner from personal liability.
Shareholders of a company are generally not liable for the
obligations of the company. Creditors of a company may seek
payment from its assets, but not the assets of the
shareholders. This means that business owners may engage in
business without risking their homes or other personal
property.
Thank you for taking the time to read this Article. I hope
you've found it useful. If you have, please drop me an email
and let me know what you think.
You can email me at...
Affiliate Marketing BasicsAffiliate marketing is one of the fastest growing ways to make money on the Internet. You can become an affiliate for any ..... constantinesavva@accamail.com
Alternatively, you can visit our website at
http://www.tax-accounting-london.info and read a series of
other full length articles that present the complete picture
on a variety of interesting topics.
If you would like to know how to save tax and make sure that
more of your hard earned cash stays with you to expand your
business and increase your profits, we have a Free Special
Report addressed to small businesses either starting up or
already in business. This Exclusive Free Special Report is
available automatically when you subscribe to our regular
series of Free Newsletters on finance advice and tax
planning by visiting our subscription area on our website
www.tax-accounting- london.info. It is complied from real
life situations dealing with small business tax affairs for
over 10 years and it is loaded with down-to-earth advice and
practical, understandable examples.
LEGAL NOTICE
Whilst every care has been taken in the preparation of this
article, the author cannot accept responsibility for any
errors or omissions. Proper professional advice should be
taken at all times.
We retain copyright for the contents of this article. Any
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