Your company can invest pre-tax income into the pension, saving you a considerable sum compared to investing post-tax income in a personal pension. "Publication 970 Tax Benefits for Education," Pages 47-49. Personal pension contributions are restricted to no more than 100 per cent of an individual’s relevant earnings, meaning they need to be carefully considered when using some of the other strategies in this article. Meaning in 2020/21 you can take £50,000 from a company and pay only £2,662 in personal tax. The Business Interruption Loans, however, have now been rolled out as of yesterday, and a number of our clients have reported back that they are in the application process. Also, taxable dividends are not deductible (salary is), which becomes significant if company income exceeds $500,000. The Eat out to Help out has proved so popular – offering 50% discounts on Mondays, Tuesdays, and Wednesdays – it has prompted a few establishments to keep it going in September out of their own pocket. As ever, please consult your accountant before acting on any of the information contained on Company Bug. There was, however, confirmation during Prime Minister’s questions today that an announcement on support for self-employed workers would be announced by the Chancellor of the Exchequer in tomorrow’s evening briefing, and I know a number of our clients had an interest in being kept in the loop regarding this.… Read more, Today has been a day of radio silence in terms of further information from the Government on the various schemes available to our clients, so unfortunately we do not have too much more information to pass on. The key take homes from this plan were the following: The new Job Support Scheme to replace… Read more, Rishi Sunak: New ways to protect jobs ‘my priority’ The Chancellor has said that his number one priority is protecting jobs, due to the unemployment rate hitting the highest level in two years and the approaching end to the Furlough scheme. Quite how this will… Read more, It has been a while since we have written an update, but there hasn’t been much to write home about. Fleet House, 59-61 Clerkenwell Road, EC1M 5LA In 2019, the exemption is $11.4 million. That limit, however, doesn’t apply if you pay your grandchild’s school directly to cover tuition fees. If you are not claiming business mileage, then you may be missing out on a good source of tax-free income. Further information on the Job Retention Scheme In addition to the previous information we have posted on this scheme, further details were released yesterday: Who qualifies? Ready to know more about the financial health of your business & family? The helpline allows any business or self-employed individual who is concerned about paying their tax due to coronavirus to get practical help and advice. Tax diversification — having assets in multiple types of accounts — can improve your flexibility in retirement. Abbott recommends a gross monthly salary of £660, which works out at £7,920 a year, with the balance paid as dividends. Try our money saving tips for limited companies for more ideas on how to make your business more lean and efficient. If the child enrolls in a school that requires a contract, experts caution that the person paying the bill—even if it’s a grandparent—should be the one who signs it. If you do, these dividends are illegal. The first £1,000 of interest received by basic rate taxpayers is tax-free, after this the rate charged is 20%. You should consult an accountant before considering this option, as so-called ‘income shifting’ is a thorny issue in accounting circles. This scheme is open for 3 months and may be extended.