How we restructured a York hospitality business for £9,400 saving
Client K runs a restaurant and guest accommodation in central York serving the strong tourist trade, trading as a sole trader with profits around £86,000. He was paying higher-rate income tax plus Class 4 NIC, his partner managed the business side full-time without a formal structure, and tips weren't organised 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 partner onto proper PAYE and as a shareholder reflecting her genuine full-time role, reviewed the VAT treatment of the food and accommodation, and set up a tronc for the front-of-house tips.