Simpson Wood

01484 534431



Incorporation of sole trader

Achieved tax saving for client of £7,000 p.a.

CLIENTS PROBLEM

We have a client who operated as a sole trader generating profits in the region of £50,000 per annum and paying the associated tax and national insurance liability on those profits despite the fact that he did not draw all the profits from the business each year.

OUR SOLUTION

We suggested incorporating the business and again selling the goodwill to the limited company for a figure in the region of £200,000 based on the level of recurring income the business was generating, using entrepreneur's relief available, along with remuneration planning within the limited company.

OUTCOME

As a result of our tax planning strategy, the annual tax saving for our client is in the region of £7,000 per annum.
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