How we restructured a Neasden wholesale business for £11,800 saving
Client K runs a wholesale business near Neasden supplying South Asian grocery products to retailers across North West London. It traded as a Ltd company with Client K as sole director and shareholder taking a single annual dividend, while his wife and brother both worked full-time in the business (warehouse, deliveries, sales and admin) on modest PAYE salaries with no shareholding.
We rebalanced the structure. We brought the wife and brother in as shareholders reflecting their genuine full-time involvement, set all three directors' salaries at the NIC-optimal level, split dividends to use all three personal allowances and basic-rate bands, claimed the Employment Allowance against employer NIC on the warehouse staff, and set up employer pension contributions as a further efficient extraction. We also reviewed the VAT treatment of the mixed zero-rated and standard-rated grocery stock.