Client Story
How we saved a Walton-on-Thames contractor £8,200 a year through proper structure
Client R is a Walton-on-Thames-based engineering contractor working through a Ltd company on contracts with corporate clients. The company had been set up without much advice, salary set sub-optimally, no dividend planning, no pension contributions, and no documented IR35 assessment of the contracts.
We reviewed everything. We assessed and documented the IR35 status of the contracts (outside, given genuine substitution rights and control over delivery), restructured the remuneration to salary at the NIC-optimal level plus dividends, and set up an employer pension contribution of £23,000 a year to his SIPP, tax-deductible for the company and a highly efficient extraction.
Total outcome: annual tax saving of £8,200 through proper remuneration structuring and pension contributions, a documented IR35 position protecting against challenge, and £23,000 a year going tax-efficiently into his pension.