How do i reduce my tax bill!!!??
My accountant has told me i need to pay a bonus through my wages to avoid a huge corporation tax bill this year. He wants me to pay myself £60,000 at xmas. As i already pay 40% tax this means im going to pay £24,000 in tax, is there any way i can avoid this!?!?
United Kingdom - 4 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
Get yourself a decent accountant, they will know all the tricks to minimise your tax bill. have you got a good pension sorted out yet? putting loads into that earns you alot of tax relief
Answer 2 :
no but if you want to donate some to my favourite charity (me) you are quite welcome to.
Answer 3 :
depends on what the corp tax bill will be. if its more than £24000 then its best to do that. I would ask what other alternatives there are with regards to dividends etc..
Answer 4 :
You reduce YOUR tax bill by not taking the bonus. This will impact on the CT position. Alternatively, make a contribution to a pension scheme. Wholly tax deductible, but a case of the tax tail wagging the dog. Why don't you ask your accountant? Don't you trust him?
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