This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

LLP taxes and General info

Joined:Tue Mar 28, 2023 1:12 pm
LLP taxes and General info

Postby Tokyorob77 » Tue Mar 28, 2023 1:23 pm

Hi TW,

Hope you are all well.

I am in need of advice as I feel I may not be answering the right questions to my accountants ( or I just don't like the answers ;-)

We are a family fun business that has just moved from a Sole trader to a LLP.

Gross profit is around £180,000. Currently, I will draw a wage of £00k and my wife is just setting her wages up to be about the same. We are looking to add as much as we can into a pension to avoid going over the 40% tax bracket.

I am looking for a bit of advice on the best way forward. Happy to pay my Tax but losing things like child tax credits etc whilst paying more smarts a little.

Thanks in advance

Joined:Sat Feb 01, 2014 3:26 pm

Re: LLP taxes and General info

Postby bd6759 » Wed Mar 29, 2023 11:48 pm

You will still get taxed on the profits, not your drawings.

You need to speak with your accountant.

Joined:Thu Sep 21, 2023 1:36 pm

Re: LLP taxes and General info

Postby mitchellwilliam912 » Wed Oct 18, 2023 3:02 pm

By reducing your taxable income, you may indeed qualify for child tax credits and other benefits. The eligibility for benefits depends on various factors, so it's essential to consult with a financial advisor or tax specialist to understand how pension contributions may impact your specific situation.

Return to “Business Tax”