Top Tax Tips for Owner Managed Businesses - Tip 1 - Remuneration Planning

Top Tax Tips for Owner Managed Businesses 1. Remuneration Planning Remuneration planning is a key strategy to mitigate the tax liability of a shareholder-director. The planning adopted will depend on the commercial requirements of the company but may include: ■Bonuses ■Dividends ■Loans ■Capital Distributions (perhaps on a liquidation) For a stand-alone small company the best strategy remains to pay a small salary complemented by dividends. Every case is different though and depends on the marginal rate of the company and individual. Utilisation of a spouse’s unused basic rate band should also be considered but must be handled with care and advice taken.