Tax-efficient, sensible financial planning and protection for self-employed individuals and small business owners.
If you need a mortgage, or your current mortgage deal is about to expire, the Clever Mortgage Shop has access to the entire market, including mortgages designed for contractors and small businesses - even those that have recently switched to PAYE. These are typically based on 46 weeks income per year and come with special rates.
We can find you the best deal, quickly and with total independence.
We can also source Buy to Let Mortgages at up to 90% of property value, as long as the rental amount exceeds the mortgage servicing cost, and even commercial or SSIP mortgages.
For income above £41,450 per year, even with a limited company structure, an individual pays nearly half of any extra income in tax.
Above £100,000 per year, because you start to lose your personal allowance above this level and because of the additional tax rate, this increases to nearer 60%.
For this reason, unless you need all of the money your company makes as income, it often makes sense to leave it in the company and invest it, rather than withdrawing it.
An NISA is the start point – again due to tax efficiency. You can invest up to £15,000 in an equity NISA each year, tax-free, before the end of the tax year (5 April) and you still have instant access to your money if you need it.
Corporate bonds are another appealing option – legitimately investing in an offshore bank account via a bond is a zero risk investment (as long as the bank account guarantee limit is not exceeded) and can currently yield between 5% and 7% interest. You only pay tax on the interest once the funds are brought back to the UK.