One of the fundamental ways to control your tax liability is through your business structure. For many business owners an important question asked is, “should I trade as a sole trader or a limited company?”
 
Historically the generalised trade-off was always the cost savings being a sole trader compared with the fixed corporation tax rate for limited companies.
 
Recently the tax legislation has changed making incorporation a more challenging exercise to determine the correct path for business owners. Despite this, the fact remains that by choosing the right structure that fits your business, you can save often thousands of £’s each and every year, without you or your business doing anything different.
 
So how do we guarantee what structure is right for you and your business?
 
We achieve this by investing in a tax software tool called “Incorporation Tax Planner” (ITP). Through this tool, we enter your financial results as well as your required drawings to generate a structure that is bespoke to you and your business.
 
Not only will ITP calculate live in front of you a comparison of your tax liabilities associated with trading as a sole trader or a limited company, but it can also be flexed real time to account for the following changes;
 

• increase/decrease in profit levels
• increase/decrease in drawings
• impact of salary versus dividends.

So don’t take a guess and risk losing out on those tax savings. Give us a call and let our tax software tell you THE tax efficient way to structure your business.