Due to the changing economic environment and rising tax costs we find that we are increasingly advising people on how best to structure their consultancy income.
We review the individual’s sources of income to determine the most tax efficient structure (e.g. whether the individual should structure their consultancy income as a sole trader or a company) and we also ensure that all the relevant reliefs, exemptions etc are/have been claimed.
Although the corporation tax rate for a company is lower than the income tax rates this is not the only issue to be considered when deciding whether a company is appropriate. We consider all the issues including tax costs, set up costs, ongoing compliance costs when determining the best structure. Once the structure has been agreed, we can also arrange the implementation of this.
We have advised a number of clients in relation to setting up companies where a company may not naturally be the obvious choice for the income (e.g. doctors, dentists).
We have also advised a number of artists in order to maximise their exempt income now that the artist’s income exemption has been significantly curtailed.