How dividends can be taken to be a tax efficient method of renumeration

Taxation is an important consideration for all businesses.

Critically analyse different methods for business owners to legally limit their exposure to taxation.

use real industry examples as part of the evaluation and comparison.

This essay could include short sections on

a) differences in rates between Scotland and England

b) how dividends can be taken to be a tax efficient method of renumeration

c) national insurance contributions – a knowledge of main rates and an understanding of the effects of employer’s contribution on the profit and loss account

d) corporation tax – knowledge of rates and an appreciation of the benefit of wages in reducing corporation tax as opposed to dividends

e) Gifts and inheritance tax

f) Annual Investment Allowances

g) Writing Down Allowances

h) Capital allowances for energy-efficient technology

i) Research and Development