Profit Extraction Planner

Profit Extraction Planner 2021/22 tax year

The personal tax system is complex with a system of different tax rates and allowances applying to various types of income. Advising clients of a profit extraction strategy appropriate for their circumstances is not always straightforward.

The Profit Extraction Planner provides the answers. It is an Excel spreadsheet which guides the accountant through the interest and dividend regimes by computing, in real time, the effect of inputs of interest, salaries and dividends. It allows an accountant to demonstrate to a client company and its director-shareholders the tax effect on the company and the director-shareholders of alternative extraction strategies.

It caters for salary, dividend, interest and pension contributions as means of profit distribution between multiple director-shareholders (up to six). It takes other income into account.

'What if' analysis is provided which shows the marginal costs of increasing dividends or salaries for each of the director-shareholders.

The output sheets have been designed to be printed out in a form which can be presented to clients.

Please click here for more details of the input screens and output from the Profit Extraction Planner.