Company owners wishing to extract profits from their companies as tax efficiently as possible face an array of conflicting and ever-changing factors. When companies make profits, there are a number of available methods for extracting funds, such as:
- Remuneration for employees/directors (salary, bonuses, benefits etc.);
- Distribute profits to their shareholders by way of dividends;
- Company pension contributions;
- Payment of rent (where the property is rented by a director/shareholder);
- Interest (where loans have been made to the company);
- Capital distributions; and
- Private Investment Schemes.
This brief will aim to explore various methods in which profits can be extracted from a company by its shareholders and employees, and the tax implication of each of them. Click here to view the briefing note in full.