Tax cuts are universally popular – at least with those who benefit from them. Unfortunately, modern day tax codes are so complicated that what is intended to be a broad-based tax cut can lead to an increase in the effective tax rate for most recipients. Don’t believe me? Then let’s take a look at the so-called ‘Trump tax cuts’ of 2017.
I wonder if this is the whole story. A small business might decide to minimise taxable profits by paying herself more or putting more in the pension pot, thereby reducing taxes due from the business and sheltering the profits in their personal accounts
I will defer to you on the tax point but I suspect pension contributions would be highly tax efficient and a decent accountant would help minimise combined corporate and personal tax.
I wonder if this is the whole story. A small business might decide to minimise taxable profits by paying herself more or putting more in the pension pot, thereby reducing taxes due from the business and sheltering the profits in their personal accounts
I will defer to you on the tax point but I suspect pension contributions would be highly tax efficient and a decent accountant would help minimise combined corporate and personal tax.