Exclusive deal
My client receives a very substantial lump sum each year under an exclusivity deal with a television company. The final payment falls due in July 2010 and covers the year to June 2011.
With the introduction of the new 50% tax rate band for 2010/11 I was contemplating invoicing the TV company on 31 March 2010 to bring forward the chargeability of the income to the current year.
I am happy with the consequences insofar as it will accelerate payments of tax and VAT. However would this also save personal tax as I am hoping?
I am also wondering whether – to mitigate tax liabilities – some or all of my client’s income could be invoiced via a limited company. Do Taxation readers have any suggestions in that regard?
For example would all such income have to be dealt with in that way or could...