1) Set it up right and the company pays corporation tax at 20% upto £150,000 profit (check the IR web site on www.inlandrevenue.gov.uk ) Otherwise its 30%
2) The most efficient way to get cash is via dividends. Around £30,000 per annum per shareholder has no further Tax Liability.
3) It seems the best way is for Husband and Wife to be a single shareholder (i.e both own share jointly, not individually) This stops the IR claiming against a certain law which may apportion all dividends to one person. This means you can get around £60,000 per annum out of a company with no tax or National Insurance liability.
4) Ensure that the company does not have an employment contract with you the Director. This requires you to write yourself a letter stating as such!!!. This stops liability for NI.
1) More paperwork
2) Less efficent when large withdrawls required.
3) The IR will go over you with a fine tooth comb.
Whatever you do seek professional advice, I may be wrong.
Professional advice is your best bet. You can't cut corners when it comes to the IR, you have to make sure you are bullet proof. I am not sure about the latest changes to IR35, but you need to watch out for that and for any structures which the revenue perceive to be avoidance procedures - they have their catch-all anti-avoidance legislation which gives them Carte blanche to tax you however they feel they should.
If you want to get very sophisticated then you need to look at offshore incoproration perhaps with bearer shares and discretionary trusts - it just depends on how "efficient" you wish to be woth your financial affairs.
Trading companies pay tax at 0% for profits under £10,000, 19% between £10,000 and £300,000 and 30% over £300,000.
The only real advantage of trading through a limited company is these lower tax rates (as opposed to Income Tax/CGT at 22%/40%).
However, only trading companies qualify for the lower corporation tax rates. All other companies (including investment companies) pay tax at 30% (therefore - no advantage)
I'm not sure that the trading of stocks, futures etc amounts to a trade under the Investment Companies legislation (see Close Investment Holding Companies for definitions). This is something I am looking into for myself. I'll let you know as soon as I find anything else out.
Unless you draw a nominal salary, let all the equity build up in a company bank account and sell the shares of the company to a third party as an investment which will make you eligible to claim 1m of your lifetime allowance of entrepreneurs tax relief of 100% on capital gain .
Also the buyer (assuming it's a lot of money and they are millionaires lol) will benefit from 20% tax on interest rather than 40% higher rate and could draw on the reserve as and when they please or transfer/incorporate the shares and hence the cash, into some sort of trust for their brat.