LLP taxes and General info

[Tokyorob77]

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

[bd6759]

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

You need to speak with your accountant.

[mitchellwilliam912]

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.