GET INTERACTIVE AND GAIN CUSTOMERS!

Written by Jennifer Johnson


Continued from page 1

Aren't there any other matters to consider in deciding whether to incorporate or not?

Higher administration costs to comply with company law, payroll and bookkeeping is one factor. Another issue is pension planning. Extracting profits out ofrepparttar company as dividends rather than salary means that there will be no "net relevant earnings" and therefore pension contributions can't be made. Butrepparttar 134481 advent of stakeholder pension plans has meant that contributions up to œ3,600 per year can be made withoutrepparttar 134482 need for any earnings. If a person does not wish to transfer funds in existing plans into stakeholder because of high charges, there is a way out:repparttar 134483 best net relevant earnings (i.e. salary) in five consecutive years can be used for making contributions forrepparttar 134484 next five years, even if there were no salaries inrepparttar 134485 remainder four years. It is comforting to know that entitlement to basic state pension is not affected by taking a salary fromrepparttar 134486 company atrepparttar 134487 level of a person's personal allowances i.e. œ4,615.

Furthermore, an individual may decide not to bother with pension plans and instead invest in ISA. Often, these can be more efficient than pensions but that's besiderepparttar 134488 scope of this article. If that option is taken, no salary is necessary.

Another factor is business motoring. It might be tax advantageous for an unincorporated business that owns many cars not to incorporate because if these cars have some private use there will be benefits in kind taxed onrepparttar 134489 users. These are generally higher thanrepparttar 134490 straight apportionment between private and business for all car running costs inrepparttar 134491 case of sole traders.

The conclusion is that there can be considerable tax savings waitingrepparttar 134492 sole trader who decides to go downrepparttar 134493 road to incorporation. But, one needs to proceed with caution and careful planning. And don't forgetrepparttar 134494 biggest advantage of incorporation, which is Protection from Personal Liability. Incorporating is one ofrepparttar 134495 best ways to protect a business owner from personal liability. Shareholders of a company are generally not liable forrepparttar 134496 obligations ofrepparttar 134497 company. Creditors of a company may seek payment from its assets, but notrepparttar 134498 assets ofrepparttar 134499 shareholders. This means that business owners may engage in business without risking their homes or other personal property.

Thank you for takingrepparttar 134500 time to read this Article. I hope you've found it useful. If you have, please drop me an email and let me know what you think.

You can email me at...

constantinesavva@accamail.com

Alternatively, you can visit our website at http://www.tax-accounting-london.info and read a series of other full length articles that presentrepparttar 134501 complete picture on a variety of interesting topics.

If you would like to know how to save tax and make sure that more of your hard earned cash stays with you to expand your business and increase your profits, we have a Free Special Report addressed to small businesses either starting up or already in business. This Exclusive Free Special Report is available automatically when you subscribe to our regular series of Free Newsletters on finance advice and tax planning by visiting our subscription area on our website www.tax-accounting- london.info. It is complied from real life situations dealing with small business tax affairs for over 10 years and it is loaded with down-to-earth advice and practical, understandable examples.

LEGAL NOTICE Whilst every care has been taken inrepparttar 134502 preparation of this article,repparttar 134503 author cannot accept responsibility for any errors or omissions. Proper professional advice should be taken at all times.

We retain copyright forrepparttar 134504 contents of this article. Any unauthorized copying or onward distributions are prohibited without our consent.

Jennifer Johnson is the owner of Logo Design Zone. She can create a 100% unique, totally memorable logo for your business - for UNDER $200! Does your current logo make the grade? Take Logo Design Zone's free logo quiz and find out!


GET SMART AND KEEP THOSE VISITORS!

Written by Jennifer Johnson


Continued from page 1

Aren't there any other matters to consider in deciding whether to incorporate or not?

Higher administration costs to comply with company law, payroll and bookkeeping is one factor. Another issue is pension planning. Extracting profits out ofrepparttar company as dividends rather than salary means that there will be no "net relevant earnings" and therefore pension contributions can't be made. Butrepparttar 134480 advent of stakeholder pension plans has meant that contributions up to œ3,600 per year can be made withoutrepparttar 134481 need for any earnings. If a person does not wish to transfer funds in existing plans into stakeholder because of high charges, there is a way out:repparttar 134482 best net relevant earnings (i.e. salary) in five consecutive years can be used for making contributions forrepparttar 134483 next five years, even if there were no salaries inrepparttar 134484 remainder four years. It is comforting to know that entitlement to basic state pension is not affected by taking a salary fromrepparttar 134485 company atrepparttar 134486 level of a person's personal allowances i.e. œ4,615.

Furthermore, an individual may decide not to bother with pension plans and instead invest in ISA. Often, these can be more efficient than pensions but that's besiderepparttar 134487 scope of this article. If that option is taken, no salary is necessary.

Another factor is business motoring. It might be tax advantageous for an unincorporated business that owns many cars not to incorporate because if these cars have some private use there will be benefits in kind taxed onrepparttar 134488 users. These are generally higher thanrepparttar 134489 straight apportionment between private and business for all car running costs inrepparttar 134490 case of sole traders.

The conclusion is that there can be considerable tax savings waitingrepparttar 134491 sole trader who decides to go downrepparttar 134492 road to incorporation. But, one needs to proceed with caution and careful planning. And don't forgetrepparttar 134493 biggest advantage of incorporation, which is Protection from Personal Liability. Incorporating is one ofrepparttar 134494 best ways to protect a business owner from personal liability. Shareholders of a company are generally not liable forrepparttar 134495 obligations ofrepparttar 134496 company. Creditors of a company may seek payment from its assets, but notrepparttar 134497 assets ofrepparttar 134498 shareholders. This means that business owners may engage in business without risking their homes or other personal property.

Thank you for takingrepparttar 134499 time to read this Article. I hope you've found it useful. If you have, please drop me an email and let me know what you think.

You can email me at...

constantinesavva@accamail.com

Alternatively, you can visit our website at http://www.tax-accounting-london.info and read a series of other full length articles that presentrepparttar 134500 complete picture on a variety of interesting topics.

If you would like to know how to save tax and make sure that more of your hard earned cash stays with you to expand your business and increase your profits, we have a Free Special Report addressed to small businesses either starting up or already in business. This Exclusive Free Special Report is available automatically when you subscribe to our regular series of Free Newsletters on finance advice and tax planning by visiting our subscription area on our website www.tax-accounting- london.info. It is complied from real life situations dealing with small business tax affairs for over 10 years and it is loaded with down-to-earth advice and practical, understandable examples.

LEGAL NOTICE Whilst every care has been taken inrepparttar 134501 preparation of this article,repparttar 134502 author cannot accept responsibility for any errors or omissions. Proper professional advice should be taken at all times.

We retain copyright forrepparttar 134503 contents of this article. Any unauthorized copying or onward distributions are prohibited without our consent.

Jennifer Johnson is the owner of Logo Design Zone. She can create a 100% unique, totally memorable logo for your business - for UNDER $200! Does your current logo make the grade? Take Logo Design Zone's free logo quiz and find out!


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