To us, one of the basics in owner managed companies is to get the remuneration planning right. However, that’s not always the case with other accountants.
In one case we inherited a position where monthly drawings were biased heavily towards salary, a situation we thought less than optimal. A few calculations and some simple face to face explanations later and the split of monthly rewards was altered, meaning substantial tax savings should now be achieved each and every year.
This then led to a complete review of the owners personal financial affairs and we set the wheels in motion to help mitigate future capital gains and inheritance tax.
