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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I run small youtube related business. Im running few quite

Customer Question

Hi there. I run small youtube related business. Im running few quite large youtube channels and earning from ad sales on videos. Have LTD sorted myself acting as director and my wife as secretary. Considering change accountants as I feel I could save up more on corporate tax. This year Myself taking minimal salary + dividents, wife just basic salary. This year im predicting to pay around 20k in corporate tax. So im looking in solutions to cut it as I could use that money in business developement.
So question is, How can I avoid paying mentioned corporate tax and get it in cash :)
Submitted: 9 months ago.
Category: Tax
Expert:  bigduckontax replied 9 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Remember that whilst wages count against Corporation Tax (CT) in the computation, dividends do not. So if wages are paid the CT liability reduces.

If you are expending cash to develop the business this will reduce the CT levy. Either way, at this stage, you are caught by Benjamin Franklin;s dictum that in life there are but two certainties, death and taxes. Either you and your wife pay through Income Tax (IT) or the company pays through CT.

I do hope I have shed some light on the position. Please follow up if thre is something you do not understand.

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