How We Helped a Limited Company Director Reduce Their Tax Liability
Background
The company had remained compliant with HMRC and Companies House filing requirements, but several tax-planning opportunities had been missed over multiple years.
A director approached us after years with a highstreet accountant.
- Their accounts were:
- Filed Correctly
- Compliant
- But Not Taxefficient
- Capital allowances not claimed
- DLA overdrawn
- No pension planning
- Dividends taken at the wrong time
- Bookkeeping errors
- No yearend planning
- Corrected bookkeeping
- DLA overdrawn
- Applied capital allowances
- Restructured salary/dividends
- Fixed the DLA
- Optimised timing
After reviewing the company’s accounts, bookkeeping, and director remuneration structure, we implemented several corrective actions and tax-planning improvements.
Results
Following the review and restructuring process, the company achieved:
- Approximately £4,800 reduction in Corporation Tax liability
- Approximately £1,200 reduction in dividend tax exposure
- Reduced Section 455 tax exposure by approximately £600
Unsure whether your current accountant is identifying all available tax-planning opportunities? We can review your accounts and highlight areas for improvement.
The company also improved overall financial visibility and reduced future compliance risks.
Outcome
The director now has:
- Clean accounts
- Improved visibility over company finances
- Proactive ongoing tax planning
- Improved year-end planning and preparation
- Efficient remuneration
- No DLA issues
- Lower tax bills
- Full yearround support
Proactive reviews and ongoing tax planning can often identify opportunities that are missed when accounts are treated as a simple compliance exercise.
Supporting limited company directors across the UK with fully online accounting, Corporation Tax, and tax-planning support.