Commentary

D6.658 Retaining profits in the company

Corporate tax
Corporate tax | Commentary

D6.658 Retaining profits in the company

Corporate tax | Commentary

D6.658 Retaining profits in the company

This article briefly considers why profits should be withdrawn at all. Clearly the proprietor needs something to live on and a successful businessperson is likely to want to enjoy the fruits of his labour. There is every likelihood that a significant part of the profits will be withdrawn and much of this will be required as cash (which leads to the salary/dividend comparisons). However, unless there is a necessity to withdraw profits from the company, there may be no need to suffer the higher rates of personal tax that might otherwise apply.

If there are

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial