Trusts were initially created for the Nobility and wealthy landowners to avoid paying taxes to the Crown. Trusts have been well used and instrumental in mitigating tax since medieval times for all the rich and elite gentry.
The introduction of Trusts led to a distinct loss of tax revenue and it did not take long for the first anti-avoidance statute to be introduced; by Henry VIII in fifteenth century 1535.
Since then, there have been many changes to Trusts and their uses and equally to the Inland Revenue rules which affect them.
Nowadays, you don’t have to be a Nobleman, or a wealthy landowner to want to take advantage of the many tax strategies Trusts can provide.
Many people now look to using Trusts as a means of mitigating tax which would otherwise be payable.
There are four types of tax which could affect you and your estate:
- Income Tax
- Corporation Tax
- Capital Gains Tax
- Inheritance Tax
Below highlights the amount of tax directors pay within each remuneration type:
Income Tax
In today’s high taxation environment, we are all more aware of the high levels of tax we pay. If you wish to explore and understand the different Income Tax planning opportunities available to reduce your tax liabilities, simply complete the enquiry form to the right.
A Save & Prosper Company Limited provides remuneration strategies to corporate clients that can achieve a range of benefits depending on the company’s circumstances. These benefits will typically reduce Income Tax substantially and may also result in significant Inheritance Tax savings.
Highlights the amount of tax directors pay within each remuneration type.
Corporation Tax
If you wish to explore and understand the different Corporation Tax planning opportunities available to reduce your tax liabilities, simply complete the enquiry form to the right. Following increases in Capital Gains Tax, our clients are seeking to reduce their liabilities. Through A Save & Prosper Company Limited you have access to the most innovative and effective planning currently available to meet that need.
Capital Gains Tax
If you wish to explore and understand the different Capital Gains tax planning opportunities available to reduce your tax liabilities, simply complete the enquiry form to the right. Capital Allowances are a valuable form of Tax Relief which are often over looked resulting in the majority of UK commercial property owners paying far too much tax.
Tax Avoidance Schemes
Tax Avoidance Schemes, giving you an introduction to the world of high level tax planning and saving Tax by using legal tax avoidance schemes. More people than ever are looking for answers in terms of how they can save tax especially since the legislation changes in the 2009 budget increased the potential taxation of high earning individuals to a massive 56%. 56p in every £1earned being lost to taxation, is that justifiable? Most people we talk to think not! Business owners and high earning individuals constantly ask accountants ” how can you help reduce my tax burden?”
That is not to say they do not mind paying their fair share of tax – but they do not like the thought of working incredibly hard for up to 56p in every £1 of profit going to HMRC. There is just not enough incentive to create extra profit if HMRC have the majority share. And they look to their advisors to introduce ways of helping them keep more of what they earn. If you typically earn over £50,000 and would like to explore your opportunities talk to our tax team on.
Tax Efficient Remuneration
Directors of SMEs are constantly caught in the trap of paying high rates of personal tax. Because of complex personal finances, the subject of remuneration needs to be examined very closely.
Many accountants will advise clients to go down the “dividend” route, perhaps you have been advised to use the PAYE scheme? Perhaps you take whatever drawings you need and therefore have an overdrawn directors loan account?
The table below highlights the amount of tax directors pay within each remuneration type ASPCO referred scheme have a number of remuneration strategies to optimise your personal tax situation which do not fall foul of the disguised remuneration legislation. We will help you to save money with our many legal tax mitigation methods!
We will help you to save money with our many legal tax mitigation methods!
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| Remuneration Type | % Tax on | £50k | £74k | £100k | £150k | £200k |
|---|---|---|---|---|---|---|
| PAYE | 34.82 | 39.56 | 41.93 | 46.29 | 48.31 | |
| Sole Trader | 26.93 | 31.95 | 34.46 | 38.97 | 42.23 | |
| Salary and Dividend | 18.00 | 25.60 | 29.20 | 34.75 | 37.45 | |
| ASPCO referred scheme | 19.94 | 18.96 | 18.47 | 18.33 | 17.73 |