Holland & Co face stampede over 50% tax hike.
A four point plan rushed into operation by Holland & Co to help wealthy tax payers avoid the 50% tax rate has resulted in a stampede of tax inquiries.
Quote from Nigel Holland:
"Some wealthy taxpayers will now consider leaving the country because they are not prepared to pay tax at the increased rate of 50%. We have introduced a four point plan which enables our clients to legally avoid this high rate without the need to leave the UK.
Our plan which needs to be tailored to the specific requirements of each tax payer is summarised below:
1. If you currently have an interest in a limited company consider paying yourself by dividends which will be taxed at 36% from next year.
2. If you are currently a partner in a firm you should consider sharing profits with a corporate partner so that your personal profits can be reduced. The element of profits given to the corporate partner can be taxed at 28%.
3. Consider incorporating into a limited company so that your profits are taxed at a rate of between 21% to 28% rather than the 50% rate for high earners who are self employed.
4. Arrange for share options to be paid instead of a salary. This way you will pay capital gains tax on the share options at 18% instead of 50% on earnings which exceed the lower tax rates.
The above advice applies solely to clients of Holland & Co. If any clients would like to benefit from this advice you should write to me direct on nigelholland@hollandandcompany.co.uk so that we can access your situation and calculate how much your tax saving might be."
Holland & Co do not accept liability for any non clients who decide to adopt the above advice. The advice applies as at the date this article has been written which is 3 May 2009 and may not be applicable after this date. This advice applies to the UK only."