Remuneration Planning - sound advice from Ensors

Some sound advice from Robert Leggett at Ensors

New Year – New Resolution - Remuneration Planning!

There is no longer any doubt that tax rates are set to rise. We are already promised 50% income tax and loss of personal allowances for high earners from April and higher National Insurance contributions in 2011. We should assume that this is only the start. It is time to think laterally (but within the law) and take steps for those able to do so:-

• Is the business structure right for you? Would incorporation be effective? Are shares in the right place?
• Use share schemes and incentives where rewards come from capital gains rather than income.
• Consider paying bonuses by 5 April.
• Equally, consider paying dividends by 5 April. Money can be lent back to the company.
• Where married couples or civil partners are in business together, it may be possible for profits or dividends for each to be paid efficiently.
• Consider taking advantage of pension contributions now to avoid current tax relief restrictions and those due in 2012.
• There are alternatives to conventional pension products.
• Consider the impact of capital and revenue expenditure on taxable profits and plan these to minimise tax.

As always, professional advice will be needed to ensure that all aspects are fully considered.

For further information or advice contact Robert Leggett on 01473 220008 or email robert.leggett@ensors.co.uk. Alternatively, Ensors are hosting a Remuneration Planning Update in Ipswich and Cambridge on 9 and 10 February respectively – for further information please visit www.ensors.co.uk/site/events

This information is given by way of general guidance only, and no action should be taken solely on the basis of the information contained herein. No liability is accepted by the firm for any actions taken without seeking appropriate professional advice.