Extracting profits from companies

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Extracting profits from companies by Mind Map: Extracting profits from companies

1. Rent

1.1. Income tax for individual

1.1.1. Property business

1.2. Corporation tax deduction for company

1.2.1. Wholly & exclusively?

1.3. Other considerations

1.3.1. Restrict PRR?

1.3.2. Restrict Entrepreneurs' Relief?

2. Pension

2.1. Annual allowance

2.1.1. £40,000

2.1.2. Cfwd unused allowance

2.1.3. Tax charge if exceeded

2.2. Lifetime allowance

2.2.1. £1,030,000

2.3. Corporation tax deduction for company

2.3.1. Wholly and exclusively?

2.3.2. Spreading provisions

3. Salary/bonus

3.1. Income tax for individual

3.1.1. 0% within personal allowance

3.2. NICs for individual

3.2.1. 0% below Primary Threshold

3.2.1.1. xyz

3.2.1.2. xyz

3.3. NICs for company

3.3.1. 0% below Secondary Threshold

3.4. Corporation tax deduction for company

3.4.1. Wholly & exclusively?

3.5. Other considerations

3.5.1. National minimum wage

4. Interest

4.1. Income tax for individual

4.1.1. Tax-free savings allowance

4.2. No NICs

4.3. Corporation tax deduction for company

4.3.1. Commercial rate?

4.3.2. Relief delayed where paid late

4.4. Form CT61 procedure

4.4.1. Deduct tax at source

5. Loan

5.1. When loan made

5.1.1. PAYE if in advance of earnings

5.2. While outstanding

5.2.1. S. 455 tax

5.2.1.1. 32.5%

5.2.2. BIK

5.2.2.1. Low interest

5.2.2.2. P11D

5.3. Repaid

5.3.1. S. 455 tax due back

5.4. Written off

5.4.1. Dividend for individual

5.4.2. Earnings for NICs

5.4.3. S. 455 tax due back