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  • Writer's pictureNaresh Sethi

LIMITIED COMPANY STRUCTURE TAX INEFFICIENT IF PENSIONABLE AGE

A limited company structure can save tax, especially if one taxes out funds by way of a small salary up to the personal allowance level and then dividends after that. The attached table drawn up by me shows this to be true for profit levels (before extraction of funds) of between £30,000 and £100,000. However if one is above state retirement age then being a sole trader is much more beneficial because there is no employee or personal national insurance.


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