Limited Company Tax
How limited companies are taxed – including how to deal with Corporation Tax, VAT, Class 1 National Insurance, CGT, PAYE (Income Tax) and how to run your payroll.
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The most tax-efficient director’s salary for 2022/23
In this guide, we explain how to work out the most tax-efficient salary level for limited company directors for 2022/23. Do you even have to pay directors a salary at all?
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Limited company dividend tax calculator (22-23)
Use this dividend tax calculator to work out how much tax you will incur on any combination of salary and dividends during 2022-23.
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How much limited company tax do I have to pay?
All companies are taxed on their profits. Directors and shareholders also pay tax on dividends and other income they receive. We also explore VAT and National Insurance.
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What is the Marriage Allowance and how do you claim it?
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 £252 during the 2022/23 tax year.
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PAYE (Pay As You Earn) – guide for limited companies
Is your business a Limited Company that employs staff? If so, you’ll have likely already come across Pay As You Earn (PAYE for short) – or at least you certainly should have done!
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Paying into a pension from your limited company
If you run your own limited company, there are two ways you can pay into a pension fund, both of which offer significant tax advantages.
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What is National Insurance, and what are Class 1 NICs?
How Class 1 National Insurance is applied to the salaries of limited company directors and employees, including the current rates for employers and employees.
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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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Can I use my personal bank account for business?
Whether or not you need a separate business bank account depends entirely on whether you are going into business as a sole trader, or setting up a limited company.
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Setting up a limited company payroll – the basics
When you set up your own limited company, one of the most important things to consider if you also have employees is to set up your company’s payroll – to pay salaries, and account for income tax and NIC liabilities.
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Limited company owners – 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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What is Corporation Tax, and how do you account for it?
Corporation tax is charged on the profits of all UK-based companies, such as limited companies and foreign companies with offices or branches in Britain.
