Alan Pink considers whether the general reluctance on the part of professionals to set up dividend remuneration schemes is well founded.
Tax and other financial professionals, and well-informed clients for whom they act, are understandably cautious about any arrangement to which the word “scheme” could reasonably be applied. The word has connotations of the sort of “off the peg” and mass marketed tax planning, or avoidance, that has recently received so much bad press. However, the fact of the matter is that any conscientious professional adviser is stuck between a rock and a hard place: where the law is, comparatively speaking, benign, and there are opportunities for clients to save significant amounts of money, an adviser could be accused of not doing their job, if they don’t make their clients aware of the current state of the law and any opportunities that result.
