How we restructured a Chadwell Heath restaurant for £7,800 saving
Client K runs a South Asian restaurant and takeaway on the Chadwell Heath High Road trading as a sole trader, with profits around £70,000. He was paying higher-rate income tax plus Class 4 NIC, with no structure for his brother who managed the kitchen full-time, and tips weren't structured through a tronc.
We incorporated the business into a Ltd company, set Client K's salary at the NIC-optimal level with the balance as dividends, brought his brother onto proper PAYE and as a minority shareholder reflecting his genuine role, reviewed the VAT (eat-in and hot takeaway standard-rated, cold items zero-rated), and set up a tronc for the waiting staff's tips.