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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 1812
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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We currently have a business set up with a sole trader and

Customer Question

We currently have a business set up with a sole trader and an employee paid a base salary + commission every month. However, we expect to restructure the business within the next few months to create a company in another country, with both the current sole trader and employee as shareholders. The employee's commissions this month were high, we expect significant income tax to be paid by the employee as well as high national insurance contributions to be paid by the employer. Is there a way to create a pot of funds towards set up fees and equity for the new corporation and expense it against this current month for the employee? The employee plans to contribute towards set up costs and equity anyway when the company is formed, we're just trying to keep the money in the business instead of taking it out and putting it back in, in the hopes of saving significant tax.
Submitted: 1 year ago.
Category: Finance
Expert:  Jawwaad Ahmed replied 1 year ago.

any deadline for this?

Customer: replied 1 year ago.
2nd June 5pm UK time.
Expert:  Jawwaad Ahmed replied 1 year ago.

okay will try to solve your query, thanks.