What is Profit Extraction Planning? It starts with simple questions: salary, dividends, spouse. Then moves on to pension contributions and conversations around Investment Relief (IR) and Entrepreneurs Relief (ER). We then often also use Venture Capital Trusts (VCTs) to extract more. These conversations might even span to succession planning and the best use of inheritance.
Why do we do it? Tax efficiency and planning are one of the core components of wealth creation. Here we call it finding the bung; simply stemming waste is one of the most important first steps in our Ltd Co directors’ journey.
What benefit does this provide? Optimising the amount you need to work for the amount you get out.
What do we need from the client? Deep engagement, this is complex financial planning.
What will we produce? A strategy for life
What tools do we use? All of the aforementioned tools