What is Tax Mitigation

Published on March 2017 | Categories: Documents | Downloads: 23 | Comments: 0 | Views: 228
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What is Tax Mitigation?
What is it?
The Company Owner arranges the company's financial affairs in a way to minimise tax within the CURRENT law. This can be done by having a discussion with your Tax Advisor.

All Tax mitigation schemes have to be disclosed to HMRC for them to legally work. All of our schemes have been fully disclosed to the HMRC, and we are given a Disclosure of Tax Avoidance Schemes (DOTAS) reference to confirm this.

HMRC wording
HMRC wording clearly states that you should seek advice to pay the correct amount of tax.

An accountant would work under the GAAP Accountancy rules by looking at the company's receipts and sales. A majority of accountants are small firms specialising in VAT and Accountancy, but not Tax Planning. The largest firms in the country will still only have one person dedicated to Tax Planning. The advice an accountant may give is to take a small salary (circa £5000£6000) and take the rest as dividends, or, add your wife as a Shareholder and she can then also take Dividends, or employ your wife.

If you went to your GP with chest pains you would be worried if they started to operate. Everybody has their specialist areas.


Advantages of accountants:
They know and understand your personal situation. ● They are generally always available. ● They have your best interests at heart.

Disadvantages of accountants:
● They do not generally have access to Tax Planners. ● They can only act within GAAP Accountancy rules. ● The do not have Tax Law Qualifications

What are the differences between Accountants and Tax Advisors?
Accountants look at your business historically whereas Tax Advisors look further.


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