Company Structure
Episode description
Shaz explains how company structure impacts tax and goes into detail about a holding company structure and how it can be used effectively
He answers questions about payments to subcontractors and explains how entrepreneurs' relief works sharing great content for anyone building a business
KEY TAKEAWAYS
- A benefit of a holding company structure is less tax
- The holding company shouldn’t do anything except holding
- If the holding company is also trading then if it goes bust all the other companies are liable to pay the debts
- The Construction Industry Scheme, set up by HMRC means you hold the tax payment for any sub-contractors
- If you have trading status there are tax allowances you are entitled to including capital allowances and entrepreneurs' relief
- Entrepreneurs relief means when you sell a business the first million pounds is taxable at 10%
- If you breach the 20% rule you won’t be treated as a trading group and will lose some tax allowances
BEST MOMENTS
‘A company is a separate legal entity therefore if it goes bust you are not personally liable’
‘Use the money to do more deals’
‘If you are holding properties you will quickly breach the 20% rule’
VALUABLE RESOURCES
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on: