How we saved a Braintree manufacturing family business £9,200 through restructuring
Client J runs a long-established Braintree manufacturing and engineering business trading as a Ltd company, with his wife managing the office and accounts full-time. He took all the dividends while his wife was on a low salary with no shareholding, there were no pension contributions, and the recently-bought machinery hadn't been reviewed for capital allowances.
We rebalanced and reviewed. We brought the wife in as a 50% shareholder reflecting her genuine full-time role, set both salaries at the NIC-optimal level, split dividends across both allowances and basic-rate bands, claimed the Employment Allowance, set up employer pension contributions for both, and claimed the capital allowances on the new machinery that had been missed.