Limited Company Tax

How limited companies are taxed – including how to deal with Corporation Tax, VAT, National Insurance, PAYE (Income Tax) and running a payroll.
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Limited Company Tax List – the key taxes you will encounter in business.
Corporation Tax – how it applies to limited company profits.
National Insurance – how Class 1 NICs apply to salaries.
PAYE / Payroll – How directors and employees are paid.
Employment Allowance – valuable incentive if you have employees.
Value Added Tax – should your company be registered? How VAT works.
Dividends – What are they, and how are they taxed?
Dividend Allowance – what does this £2,000 nil rate band mean?
IR35 – one tax you need to avoid if you provide personal services.

What is Inheritance Tax, and how is it applied?

As the well-known saying puts it, the only two certainties in life are death and taxes, which is definitely where inheritance tax (IHT) comes in. But what exactly is IHT, and is there anything you can do to mitigate the effects of this on an estate?

What is the dividend allowance?

In April 2016, a new ‘dividend allowance’ was created – a nil-rate tax band on the first £5,000 of dividend income. This allowance threshold was short-lived, however, and was cut to £2,000 from April 2018.

How capital gains tax works

Capital Gains Tax (CGT) is pretty easy to understand: it’s the tax you have to pay when you sell an asset that has grown in value. You will only pay CGT on any profit you made from the sale and not on the overall sum you received.

How do HMRC tax codes work?

You are assigned a tax code by HMRC so the correct amount of tax can be deducted from your earnings by your employer. Tax codes are typically issued between January and March each year, but at other times as well if there’s a change in your circumstances.

What is IR35, and will it affect my limited company?

The Intermediaries Legislation (IR35) has been a thorn in the side of limited companies who provide professional services since 2000. Here, we look at what IR35 is, and how to ensure that your company falls outside its scope.

Entrepreneurs’ Relief – 10% tax on eligible business disposals

To encourage entrepreneurship in the UK, eligible individuals pay a lower 10% rate of Capital Gains Tax on the disposal of business assets, subject to a lifetime limit.

What is the Child Benefit High Income Charge?

Since January 2013, if you (or your partner) earns £50,000 or more, your family is not eligible to receive the full state Child Benefit entitlement. Here we look at how this charge works, and why it creates a controversial anomaly in the tax system.

What is the Marriage Allowance and how do you claim it?

Introduced in 2015, the Marriage Allowance enables an individual to transfer a portion of their personal allowance to their spouse or civil partner. If you are eligible, you can claim £238 during the 2018/19 tax year.

How are limited company dividends taxed?

Limited companies may decide to distribute their retained profits to shareholders. It is a popular method of drawing down funds by directors. Here, we look at how dividends are taxed, and how to ensure that you declare dividends correctly.

What is VAT, and do I need to register my company?

Almost every consumer in Britain pays it, and it’s a staple talking point during the Chancellor’s annual budget. But what exactly is VAT and do you need to register your limited company for it?