Freedoms of incorporation

Is a company still a good choice for my private practice? It’s the big question many independent practitioners are asking.

In the second part of her response for Independent Practitioner Today, Vanessa Sanders makes clear it is important to think carefully about what you wish to achieve with your business. But do not discount using incorporation, as there are many advantages – and not always in terms of just tax.

Chancellor George Osborne is part of his family business and, according to The Times, received a dividend of around £70,000. He does not work in that business and receives a dividend because he owns shares.

There is no need for commercial justification to own shares. But you may wish to control the amount of dividend you pay to shareholders who do not work in the business and you can do this using different classes of shareholding.