Remuneration planning

How can you, as the owner of a business, ensure you get paid a reasonable amount without incurring an unexpected or unfair tax bill? The answer is usually a carefully planned mix of salary, dividends and pension contributions. We’ll make sure you get that planning right.

Many owner-managed businesses don’t have a formal remuneration strategy and, as a result, their directors pay too much tax. Of course a set remuneration structure won’t work for every business but it’s still worth taking the time to think carefully about it. It’s surprising how often potential tax reliefs and efficiencies are overlooked.

Typically, owner-managed businesses trading as limited companies will pay directors a small basic salary, to secure certain important benefits. They’ll then make up the balance of earnings with shares, dividends, pensions contributions and bonuses.

Each comes with its own tax implications for both the director and the business – and that varies from case to case. With careful planning and calculations, however, it is possible to find a sweet spot which keeps the overall tax liability at a minimum.

The remuneration tax experts at Richard Place Dobson will review your remuneration strategy upfront, and then at regular intervals. They’ll identify the most efficient approach to profit extraction and update it as both your circumstances and legislation change.

It’s not only about the here and now. They’ll help you ensure you and your family can meet your needs today, in the long-term and in retirement, after you exit the business.