Client Story
How we structured a Shrewsbury independent retailer's move to a company, £7,800 saving
Client D runs an independent retail and homeware business in Shrewsbury's historic centre, whose profits had grown past £70,000. Operating as a sole trader, paying higher-rate income tax plus Class 4 NIC, they hadn't considered incorporation, weren't handling the VAT on their mixed product range efficiently, and had no pension provision.
We modelled sole trader versus Ltd company and recommended incorporation. We set up the company, structured remuneration as salary plus dividends, reviewed the VAT treatment of the mixed standard-rated and zero-rated range, set up an employer pension contribution as a tax-efficient extraction, and claimed capital allowances on the fit-out and equipment.
Total outcome: annual tax saving of £7,800 through incorporation, corrected VAT treatment, capital allowances and proper remuneration structuring, plus tax-efficient pension provision via the company and limited liability.