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.

inheritance tax IHT
Limited Company Tax

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?

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dividend allowance 2018
Limited Company Tax

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.

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cgt capital gains
Limited Company Tax

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.

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tax coding notice
Limited Company Tax

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.

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Child Benefit Tax
Limited Company Tax

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.

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how are dividends taxed
Limited Company Tax

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.

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