Tax planning strategies are suitable for Owner Managers, Directors, Contractors and Freelancers; enabling you to maximise the returns on your earnings by structuring your affairs in a tax efficient way. The following strategies consider both profit extraction and methods of contractor remuneration.
There are ten tax planning strategies which can be used and these are:
- Optima Solo;
This can be used for the completion of individual contracts, increased sales and profits and the sale of Intellectual Property. Clients that use this type of planning can receive up to 85% of their earnings after tax, with an entry level of £50,000 per arrangement.
This is suitable for UK Limited Company Directors, Partners of LLPs and Key Employees.
- Optima Infinity;
This structures your earnings in a more tax efficient method and can be used to manage affairs, however it does have a £50,000 minimum entry threshold. Typically, clients who use this type of planning receive up to 82% of their earnings after taxes.
This type of planning is suitable for Business Owners, Company Partners and Company Directors.
- Consultant Benefit Trusts;
Consultant Benefit Trusts (CBTs) can provide discretionary benefits to self-employed consultants, who may be company directors, in a tax efficient manner. This cash flow friendly method of corporate cash extraction can also be used to clear Overdrawn Directors Loan Accounts.
CBTs are suitable for UK-based trading limited companies with pre-tax profits of over £250,000.
- Annuity Planning;
For companies currently unable to access their retained profits without incurring income tax, this annuity model provides flexible and compliant solution. Compared with typical dividend rates of 37.5%, the structure can provide savings of nearly 30%.
This type of planning is suitable for companies with post-tax reserves of over £50,000.
- Optima Professional;
If you are someone who struggles with the paperwork associated with running your own Personal Service Company, then this is suitable for you. The strategy has no set up fees and retains up to 82% of your earnings.
This is suitable for Contractors and Freelancers who want to work through a limited company structure using a Personal Service Company.
- Optima Employed;
This alternative to an umbrella company, PAYE or your own limited company allows you to retain up to 84% of your earnings. It is incredibly convenient, both minimising your administration and entirely removing the need to submit business expenses. There is no end of year Self-Assessment and AML works directly with your agency to ensure regular payment cycles.
- AML Contractor;
By using a partnership agreement you can maximise your income through tax planning. This approach can be more tax advantageous than using an umbrella company, PAYE or your own limited company. There are no joining or leaving fess and professional indemnity of up to £5m is included, as is the completion and submission of your annual tax return. Contractors using this solution can gain up to 82% of their total earning back after taxes.
- AML Healthcare;
This is a convenient method of receiving contract earning as payments are made within 48 hours of receipt cleared funds, there are no joining or leaving fees and there is no minimum contract duration. Clients can enjoy a return of up to 82% of their self-employed earnings, without the need to process business expenses.
This is suitable for use by Healthcare Professionals working in the private medical sector to maximise your income and minimise your paperwork.
- AML Legal;
This is a bespoke remuneration solution which is tailored to your needs and enables you to benefit from a return of up to 82% of your earnings. There are no fees for implementation and all of the necessary invoices and credit control payments will be taken care of on your behalf.
This is suitable for UK Limited Company Directors and partners of LLPs, with no need to alter your existing trading structure, and the solution is IR35 compliant.
- AML Legal for Barristers;
Working through a newly established Barrister Only Entity (BOE) allows barristers to retain up to 82% net earnings after tax and set aside funds for the future. All of the administration is handled by AML and each bespoke service is tailored to your needs – from set-up and incorporation of the BOE to the preparation of company accounts if required.
Can you really afford not to? Contact us today on 01909 512 120 for further information.