Determining the so-called ‘remuneration strategy’ for shareholding directors is an area that should be kept under constant review. It provides an opportunity to ensure working owner-managers of private limited companies are paying the lowest possible overall effective rate of tax.
We will take the time to review renumeration strategies with you and ensure that you are doing everything possible to take advantage of all applicable schemes, allowances and reliefs.
As a shareholding director of a limited company, the way you structure your finances, particularly your renumeration, are likely to be very different to that of a regular employee.
It is important that a company director draws sufficient remuneration to retain entitlement to state benefits and is aware that an even lower effective rate of income tax can be achieved by a combination of salary dividends and pension contributions.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual circumstances.