To save your clients unnecessary tax bills, you
need to act before 31st March 2010, because of the
changes that come into effect in the next tax year.
Remuneration and dividend planning tool
A spreadsheet that helps calculate
the most tax efficient solutions for income extraction
over the next two tax years. Contains all the dividend
minutes, loan resolutions, and client instructions
to comply with Companies Act 2006 and the PAYE legislation
to satisfy HMRC.
There have been a number of recent complex changes
to NIC and higher rates of taxes, and
HMRC are tightening up on the documentation relating
to valid dividend payments, the documentation supporting
directors’ loan accounts, and the allocation
of bonuses to tax years. Next year, it is likely to
become even more complex.
As a result, it is becoming more and more difficult
for the accounting practitioner to arrive at the optimum
combination of salary and dividends for client companies
to produce the lowest combination of corporation tax,
national insurance and income tax for client companies
and their directors and shareholders, taken together
with an optimum series of due dates of payment to
help with cash flow.
This spreadsheet takes basic data relating to the
company, its shareholders and directors, and relates
this to the tax legislation applying in 2009/10 and
2010/11. On the basis of actual income in 2009/10
and projected income in 2010/11, it permits the most
effective combination to be arrived at that keeps
the aggregate tax liabilities as low as possible on
due dates that are as helpful as possible.
It does this by fixing the historical data that is
known and then ‘toggling’ future dividends,
salaries etc to provide a report to the client with
the options.
The spreadsheet comes with a bundle of documents
such as minutes, instructions to the accountant, dividend
vouchers etc that can be filled in to ensure that
if the underlying documentation is challenged by HMRC,
the accountant will be able to resist the challenge.
Because of the law on dividends and the minutes that
are now required, a planning opportunity will be missed
if action is not taken well in advance of 31st March
2010.
This spreadsheet will help
you with this planning opportunity. The supporting
documents will help you ensure that your planning
is legal.
And it only costs £13 plus VAT. What have you
got to lose?
