I understand there can be tax advantages in setting up a company compared to operating as a sole trader ? For a one man operation, what would they be ?
The employee/ director can extract cash as salary or dividend, both subject to the same personal tax rates as a sole trader?
If the company accumulates some cash, is it true that the owner can liquidate the company and assuming it's solvent, take the cash (net assets) and pay tax at the capital gains rate rather than personal tax rate? If true, are there any restrictions around this?
How else can cash be extracted?
Which is more beneficial when considering a pension?
Any advice appreciated.
The employee/ director can extract cash as salary or dividend, both subject to the same personal tax rates as a sole trader?
If the company accumulates some cash, is it true that the owner can liquidate the company and assuming it's solvent, take the cash (net assets) and pay tax at the capital gains rate rather than personal tax rate? If true, are there any restrictions around this?
How else can cash be extracted?
Which is more beneficial when considering a pension?
Any advice appreciated.
