Background
‘Trusted Traders’ was a well-established commercial business with a substantial turnover, operating as a sole-trader. The owner’s spouse had worked in the business for a long time without taking a salary.
How GWA helped
When ‘Trusted Traders’ came to us for advice the first thing we did was look at the business structure.
The substantial profits meant that the owner had high income tax bills. We recommended incorporation, with the owner and the owner’s spouse becoming directors. We also recommended that the business premises was owned through a self-invested personal pension (SIPP).
The result was a much more tax-efficient structure with the Directors taking small salaries, dividend payments and making substantial pensions contributions. The rental income from the commercial premises also provides a future income stream for the Directors.
