How this Business Owner pays ZERO TAX on profits in his company

Usually there is 12.5% (corporation tax) tax payable on profits in your company. See how this business owner pays 0% tax in their company.

Call Now

01 5267770

Pay Less Tax on Profits Case Study

Larry, age 51, and his wife Mary, age 49, own a company and they each take a salary from the company.

Their company year-end is 31st December, and each December for the last 5 year’s I met with them to discuss profits and tax reduction strategies. Their company profits have been more or less consistent for each of the last 5 years @ €100,000 per year.

So instead of paying corporation tax on these profits, each December for the last 5 year’s they have transferred €50,000 into each of their pensions, totaling €100,000 per year. By doing this company’s profits have been reduced to €0 each year and therefore they have avoided paying €12,500 (12.5%) corporation tax each year.

This has saved €62,500 in corporation tax over 5 years, and during this time they have contributed €500,000 into their pensions.

Overall, then, they have saved €62,500 in company tax plus they have gained €270,000 in investment growth and now they have €770,000 in their pensions.

If they had left this €500,000 in their company bank account, after paying company tax of €62,500, they would now have approx. €437,500 in the company, which may also now be subject to a negative interest rate from the bank.

So, they have €770,000 in their pensions now versus having €437,500 in their company.

When I met with Larry and Mary last week, we were all celebrating this achievement and how they have converted €500,000 of company profits into €770,000 of personal wealth in such a tax efficient manner. They were especially happy that this money is not exposed to any risks in their company and that it is available to provide them with an income in the future.

CONSIDERATIONS:

Larry & Mary have been used as general names. We do not use any client names for our case studies for confidentiality reasons. We come across examples such as this regularly with our clients.
Past performance is not a reliable guide to future fund performance.
The value of your pension fund may go down as well as up.
There is no guarantee that accumulated retirement funds will provide any specific level of retirement income. We work with clients to achieve their goals.

If you require more information you can contact me on 01 5267770 or email info@guardianwealth.ie,

Jim Doyle

Jim has been providing tax, pension/investment and lifetime financial planning advice to clients for over 30 years. He has an in-depth understanding of Business Owners and their requirements, which allows him to guide his clients through the complex world of long-term financial planning.

Testimonials

See How We’ve Helped Other Solicitors

I have been receiving advice from Jim Doyle in Guardian Wealth for 3 years. I was advised by a friend to use Guardian Wealth and so I contacted them when the time came to access my pension. Jim has been very good to me and has given me great advice over the years. He keeps in touch to give me updates on my pension and he is always available by phone if I have any questions. I am delighted that I am dealing with Guardian Wealth. They are a professional outfit and very straightforward to deal with.

Mr Ian Dornan

Meath

I had been researching the possibility of transferring my UK Pension back to Ireland for quite some time. However, it wasn’t clear to me what steps I had to take to get it done. Once I contacted Guardian Wealth Jim was able to explain the process to me, organise the paperwork and deal with my UK Pension provider. I am happy to recommend Guardian Wealth to anybody who needs help with their UK Pension transfer.

Mr Staunton

Kilkenny

My husband and I contacted Guardian Wealth seeking advice and help with our pensions. I am an ex Aer Lingus employee and I found it very difficult dealing with Mercer. We met with Jim Doyle in Guardian Wealth. He gave us straightforward advice and clearly explained the options available and the process to me. Jim and his team were very efficient and easy to deal with. They dealt directly with Mercer on my behalf and got everything sorted for me. I am more than happy to recommend Guardian Wealth if you are looking for pension advice.

Clare Skehan

Wexford

What is the next step?

Usually, your first contact with us will be a short telephone call or an email with Joanne in client services. This allows us to understand your situation and let you know how we can help you. A quick phone call or email can often be the easiest way to take the stress out of these decisions.

For most of our clients that initial phone call or email is where they start to get clarity on the right steps to get the most from their Pension.

Joanne will have a quick chat with you in relation to your questions on paying less tax. If it is the right thing for you, she will set up a quick call with Jim to give you some advice over the phone or on a video call. You can contact Joanne on 015267770 or 053 9110380.

Ready to Pay Less Tax on Company Profits?

info@guardianwealth.ie