How we structured a Crouch End music producer's affairs for £9,200 saving
Client M is a Crouch End music producer with a mix of income, session and production fees invoiced through a Ltd company, songwriting royalties received personally, and occasional PAYE work on larger productions. The income streams weren't coordinated, royalties were being taxed inefficiently, and the Ltd company remuneration hadn't been reviewed in years.
We coordinated the picture. We optimised the Ltd company director remuneration (salary at the NIC-optimal level plus dividends), ensured the royalty income was correctly reported and all legitimate expenses claimed (studio equipment, software, plug-ins, instruments, a proportion of home as a studio), set up an employer pension contribution from the company as a tax-efficient extraction, and made sure the PAYE production work combined correctly without over-taxing.