How opening a business can save you tax
A story about how Angela followed her dreams and also managed to save tax in the process
Angela had planned to open a business for a long time.
She had set up her limited company and saved lots of money, so she didn’t need to take any money out of the business for a couple of years.
But then she met Russell who told her that even if she didn’t want any money immediately, she could save tax now and be owed money to pay herself in the future.
After a chat with him –
She processed a salary for herself of £737 per month. (£8,844 a year)
This meant there was no tax for her and a £1,680 tax saving for the company.
It also counts as if she had paid her National Insurance, so she gets the benefits even without paying anything.
She then voted herself an annual tax-free dividend of £2,000.
And … another dividend of £3,726 to cover the difference between her salary and the £12,570 she can have tax-free each year.
Angela was delighted, she was £14,570 better off and the company saved £1,680.
Win win win for Angela.
Lose lose lose for HMRC.
Would you like to be like Angela and have that free money?
Would you like to be like Russell and tell the world about the free money ?
What would you spend the money on?
Here’s her accountants with her pay cheque, giving it to her dog to take home…
