I'd also love to know how I can 'pocket a few bob' when all money coming into the company is fully recorded and open to Revenue inspection.
Mobile phone bills paid by the company
Most motor exps paid by the company
You are describing tax evasion. Evading taxes is open to everyone, including employees. It has nothing to do with director status.I have never seen a company director charged BIK for use of a mobile phone while it is next to near impossible for a revenue official to disprove business mileage claimed by a director unless the mileage claimed is greater than the odometer on the car involved.
I don't understand this comment. How is BIK less expensive and why would someone pay for expenses from net pay?Nonetheless, being charged BIK is a lot less expensive than paying for the expenses from after-tax income
But to answer the OP's question ........... to level the field between a sole trader and a proprietary director, as a sole trader is not entitled to a PAYE tax credit either (nor do they have the option, in the event that they are fortunate enough to make a decent profit, to choose how much to have taxed as a salary and how much to shelter in the company at a rate of 12.5%).
Such undistributed profits are generally subjected to a close company surcharge for starters, and remember passive income no charged to corporation tax at 12.5%.....
Then there is the issue of income tax on distribution when the proprietary director decides to pay it out.....
Please do elaborate.And then there are numerous ways of extracting funds to minimise liabilities further down the line (generous pension provisions for directors, retirement relief etc)
Please do elaborate.
Pensions (which are also taxed, if you're lucky enough to have one and the fund hasn't collapsed) and....
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