Corporate Tax and Trust Service
Accountants and Professional Advisers
Your client enters into a service agreement with us to provide remuneration services. A tax deductible invoice is raised to evidence this transaction. A portion of their profits are allocated towards establishing a bonus pool, from which, amounts will be allocated to each individual participator in accordance with his/her contribution to the businesses success.
The bonus pool can be allocated to directors and key staff (their families and/or charities), via a trust, without triggering an immediate taxable event for Income Tax and NI purposes. (This usually offers a better alternative to dividends or salary bonuses). As auditor, you can reduce the profits by the same amount with a P&L expense item and remove the said amount from the Balance Sheet.
Participators (i.e. business owners, shareholding directors, senior executives and/or key staff) can then access their sub-trust for investments, loans and tax-free withdrawals*. Growth and foreign income can accumulate tax efficiently within the sub-trust.
These arrangements are consistent with Schedule 24 FA 2003 in relation to EBTs, in that they either comply with the provisions or are exempt from them - typically under paragraph 8, as a payment for services.
Accounting for this service is also consistent with the general Accountancy Standards Board's principles, e.g. UITF32.
Financial Reporting Standard 12 requirements require a constructive obligation to be evidenced within the company's fiscal year; though in certain instances, this can be extended.
Our service often uses a combination of trusts, company structures and tax efficient 'wrappers' to provide staff remuneration.
AWD Chase de Vere Corporate Services Limited work with clients' auditors to structure these arrangements and there is a fee-share to enable proper due diligence to be performed by you on behalf of your clients in regard to our recommendation under a Professional Introducers Agreement.
* Depending on arrangement
For a personalised illustration please call Kristy Roberts now on 0207 029 9450 or request a call back.
Introduction
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AWD Chase de Vere Corporate Services Limited's range of services is not regulated by the Financial Services Authority (FSA) under the Financial Services & Markets Act 2000. Our recommendations and services do not include advice or brokerage in relation to regulated financial products, such as life assurance, pensions and investment products. These services can be provided by our sister company, AWD Chase de Vere Wealth Management Limited, whose contact details are available on the home page.