Background

The Corporate Profit Extraction strategy enables Limited Companies to reward key employees tax-efficiently. This strategy has been disclosed to HMRC and is aimed at owner-managed businesses. The precise mechanics IP are protected by a Non-Disclosure Agreement that all clients and their accountants/advisers will enter into.

Utilising well established generally accepted accounting principles (GAAP), the strategy utilises existing laws to create this opportunity.

In essence, the strategy enables the Employer to make a deductible reward to an employee. Both the payment (in respect of the company) and the reward (in the hands of the employee) do not attract any tax or NIC. Clients receive an end-to-end service encompassing initial consultation, full implementation and finally an ongoing service of support to both clients and their accountant.

Beneficiaries can either receive a financial reward (money) from their company; or if they prefer to leave funds in their business and benefit only from the tax sheltering achieved, they can create a credit to their Directors' Loan Account and draw down, tax-free, at their convenience.

The Terms of Engagement, include full financial protection for all associated legal fees. This is not envisaged, but for clients' peace of mind, this extends within the legal system on all associated matters upto and including the Upper Tier Tribunal (previously referred to as the High Court). Utilising the Comprehensive Protected Version would assure clients of a return of their fees in the unlikely event that the planning was unsuccessful. The strategy has been verified by Andrew Thornhill QC, a leading tax barrister. The Accountancy entries have also been acknowledged by Grant Thornton Accountants, one of the UK's biggest Accountancy firms.

The advice fee is payable upon signing if the Engagement Letter (there are no on-going or any other fees associated).

Getting Started