Are you a business-owner?
Children in private school?
How much are you paying in school fees annually?
The average cost of private school is £15,000 per annum.
If you draw a salary from your business to cover the school fees, you'll suffer tax of almost £11,000!!
If you are paying for them by drawing dividends the tax suffered is over £7,000!!
There is a tax efficient structure which can reduce these tax costs.
The use of a family trust can utilise your children's tax free allowances and cover the costs of school fees and other expenses of your children.
How does it work?
In a nutshell:
Shares in your company are gifted to a family trust
Your children are beneficiaries of the trust.
Dividends are paid to these shares
Their tax free allowances result in the dividends being subject to tax at 0%
The tax-free dividends are used to pay the school fees
You've saved £000's!
(HMRC are aware of such structures and have been for many years)
What do we offer
At CTP, our Chartered Tax Advisors have years of experience setting up these structures and can advise on a ll of the affected taxes.