With a primary focus on tax optimisation, Richmond Blackwood sets up and administers limited companies for high earners, allowing clients to grow their wealth and reduce their tax burden with minimal effort.
Our strategy utilises our varied areas of expertise in legal, tax, accounting, financial controlling and general company management.
The key to tax optimisation
When you’re an employee or freelancer, you pay tax on your entire income, and then use what’s left to cover your expenses. However, with a limited company, it works differently. You can pay for eligible business expenses, like equipment, travel, or services, before paying tax. This means you’re only taxed on the company’s profits after expenses, allowing you to keep more of your money and reduce your tax burden.
What are limited companies and why can they help optimise taxes?
A limited company is legally separate from its owners, which allows for significant tax advantages. The primary reason is that limited companies pay corporation tax on their profits only. Corporation tax is often times lower than income tax and social costs, especially when it comes to high earning individuals. The savings, reinvested within your company, can create the flywheel that allows you to build wealth much faster.
For centuries, the wealthy have earned through limited companies to lower their tax burden and build wealth more efficiently. Richmond Blackwood offers these same techniques to high earners like you, ensuring that you keep more of your money. We’re so confident in our services that we only work with clients who save more in taxes than what they pay us in fees.
Why employees are paid less than companies
When it comes to employees, the employer has to pay an additional 10-25% in social security and other costs on top of your salary before the brutto income of the employee. This is an extra cost for the company that doesn’t appear in one’s paycheck but affects the overall compensation. The lack of social costs and other ancillary expenses is one of the key reasons why consultant fees are typically higher than employee salaries.
Even if considered small businesses, those who structure their income through a limited company have more control over how and when they are taxed. By leveraging the tax system effectively, consultants can increase their profits, as they can pay for eligible expenses before tax and avoid the additional employment costs that companies typically cover for employees.
Who Can Benefit?
There are two primary types of individual clients that are not a business yet who can benefit the most from working with Richmond Blackwood. The first is someone who saves regularly and ideally likes to invest to grow their wealth over time.
The second profile includes individuals who have work, productivity, or business-related expenses that they are currently paying out of pocket. This could be anything from paying for contractors to managing marketing expenses for a secondary business they’re starting or building up.
On average, our clients save €10,500 per year after our fees. If you’d like to discover how much you could save and what specific tax optimisations are available for your unique situation, we invite you to with one of our experts today. Let’s explore the best strategies to boost your financial growth and reduce your tax burden. Disclaimer: This article is for informational purposes only and is not financial, legal, or tax advice. Each person’s financial situation is unique, so we recommend consulting a qualified advisor before making decisions about setting up a limited company or other tax strategies. Richmond Blackwood does not guarantee specific results, and tax laws vary by jurisdiction.
