In 2016 there were 4.8 million family-run businesses in the UK, making up 87.6% of all private sector firms.*
Setting up a family-run business has many benefits, but did you know that employing a family member can help reduce your tax bills?
If you are trading as a limited company, employing your spouse or partner can be particularly tax-efficient.
“Paying your spouse or partner a salary (between £118 and £166 a week), dividends or benefits can cut a lot off your tax bill,” said Peter Way-Rider.
“They won’t be liable to pay National Insurance Contributions, but benefits, such as a State Pension, will be protected.
“Utilising the personal allowance, currently £12,500, on family members is also another option to lower your tax bill”.
For further information on this or any other tax matter, contact Peter on 01244 343504.