Balancing Income and Business Performance

When the business is doing well, clients often want to take more income, but they’re also thinking ahead.

How does a bigger draw affect the company’s profitability?

Will it push them further into the 25% corporation tax bracket?

Is there a better mix between salary, dividends, or pension contributions?

With Tax Torch, you can explore all those options in a single session—and give clients a clearer view of both sides of the decision.

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• Start with client’s current income (e.g. £65,000 drawn through salary/dividends)
  
• Duplicate the scenario with increased drawings
  
• Show effect on take-home income and total personal tax
  
• Model a pension contribution to see corporate tax savings
• Compare company retained earnings across scenarios

• When a profitable client wants to increase drawings
  
• At year-end for tax and dividend planning
• During strategy sessions around retained earnings or future goals