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Setting yourself up as a company only defers the tax as whenever you want to bring it out - its a dividend and taxable at your personal rate less any tax the company has paid.
Now there are some other advantages - you can claim more on things like cars if the company owns them as they can use things like the statutory method of record keeping so they dont have to do log books etc, and the least amount you can claim as business is 74% even if you never use the car for business.
Also, by leaving the money you dont need in a company you can potentially reduce tax by hoping the tax rate is lower when you do eventually pull it out, but on the other hand it could be higher too.
Jayson
DISCLAIMER: The above statement is not intended to represent advice in way. Independent expert opinions should be obtained taking into account your own circumstances (or whatever else these silly disclaimers you see everywhere are meant to say)
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