Hi, I wonder if anybody with experience could help with my question. My situation is, I have two ltd companies making a profit after my partner and I draw a salary and make pension contributions. In previous years we both extracted the profits as salary and as expected ended up with high income tax bills. I feel the business may have a lifetime of another 5-10 years and would rather not draw these funds as salary now.
Would it make sense to set up a holding company to make investments and then only draw down income when we have no other income in 5-10 years time? I know we would still be taxed but we could keep our tax payments to 20% if we withdrew small amounts each year.
I look forward to hearing any advice you may have on this subject, thank you.
Would it make sense to set up a holding company to make investments and then only draw down income when we have no other income in 5-10 years time? I know we would still be taxed but we could keep our tax payments to 20% if we withdrew small amounts each year.
I look forward to hearing any advice you may have on this subject, thank you.