When extracting profits from your business, the tax-efficient use of benefits can save income tax and may also reduce your National Insurance Contribution (NIC) liability.
Some strategies which could help to save NICs include:
• increasing employer contributions into company pension schemes (within the prescribed limits);
• utilising share incentive plans;
• paying dividends instead of bonuses to owner-directors; and
• paying a bonus in place of an increased salary to reduce employee NICs.
We can provide advice on all aspects of tax planning – please get in touch with us for more information or email theteam@horsfield-smith.co.uk.
