Employee Benefit Trusts and Tax Reduction

A properly constituted company contribution into an Employee Benefit Trust can significantly reduce tax.

Typically a company will pay tax at a marginal rate of 29.75% and directors will then access dividends at a tax rate of 25% plus. Total tax cost of extracting profits is typically around 50%. Using employee benefit trust planning this cost can reduce to 13%.

Although we do a lot of tax planning from our offices in Birmingham we only act within our areas of expertise This complex and technical piece of tax planning is delivered by the UK‘s largest provider of employee benefit trust planning.

Employee benefit trusts are an important part of company tax planning. However the Inland Revenue do have them in their sights. Indeed they have already announced that anti avoidance legislation will be introduced in the March 2011 budget. This means there is still time to impliment this plannning. However you should be aware of the risks. Should you be seriously considering extracting significant profits from your company please give us a call to discuss the latest developments in this area. 

Using legitimate tax mitigation strategies Parker Chartered Accountants and Financial Advisors helps individuals and companies to cut their corporation tax and income tax liabilities by up to 75%. The employee benefits trust strategy is available to companies with profits in excess of £250,000.

To discuss how Parker Chartered Accountants and Financial Advisors can help you to save tax call 0121 704 1354.