What is a Tax Benefits?

A limited Company enjoys more favorable tax concessions than either Sole Traders or Partnerships. It is subject to tax but profits are not normally subject to higher rates of personal tax. Directors pay tax but they are entitled to claim all the normal personal allowances against income.

This compares favorably with Partnerships for example as their profits are divided for tax purposes amongst the partners and they are assessed personally on these amounts at once even if they have not actually drawn any cash out of the business.
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