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If you do opt to run your business through a company then take good advice on planning the way you take your ‘remuneration’ out. There is a mixture of factors that could be relevant:

    • The profit that you are making.
    • The amount you need to take out to live on
    • Your personal tax rate
    • They type of car you choose to drive
    • Your attitude to private healthcare and education
    • The extent to which other family members work for the business and the nature of their services
    • Your attitude to savings and pensions
    • The need for the company to retain profits to fund its future growth
    • Your desire to build up wealth in your own hands rather than within the company

There is no simple ‘right-and-wrong’ to the way you should plan your remuneration package. Simply be aware that you could save a great deal in both personal and corporate taxes by taking proper advice.

Take some time to consider precisely what you want to gain from being in business, and then discuss with your accountant the best way to achieve that.

Author: Businesswise Accountant

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