The Client
A successful self-employed surveyor in the South West.
The Challenge
The client was paying significant levels of higher rate tax whilst his wife was not utilising her basic rate band.
The Solution
We discussed the options available to the client and recommended that he incorporated the business. Having a limited company would enable him to reduce his income tax liability.
Furthermore by ‘selling’ the goodwill of his sole trade business to the new company he was able to obtain a substantial amount of money on which he paid just 10% capital gains tax rather than 41% income tax and national insurance.
Following the incorporation he also made his wife a shareholder so that she could receive income and utilise her basic rate band.
Great Results
As a result of our advice the clients were able to reduce their overall income tax liabilities, enabling them to keep more of the money they earned.