How are limited companies and company directors taxed?
All companies pay tax on their profits. Directors also pay tax on dividends and other income they receive. We also explore VAT and National Insurance.
Tax
Limited companies can face several different taxes depending on how they trade and how directors take money from the business.
Our tax guides cover Corporation Tax, VAT, PAYE, National Insurance, dividend tax, Capital Gains Tax and payroll, with practical explanations of the filing and payment rules directors need to know.
Managing HMRC payments on account as a company director
Payments on Account (for self assessment) explained for limited company directors – key deadlines, examples, and how to avoid interest or overpaying HMRC.
Limited companies and the flat rate VAT scheme (FRS)
The Flat Rate VAT scheme (FRS) is designed to make it easier for small businesses to fulfil their value-added tax (VAT) obligations.
Running payroll for limited company directors – how PAYE works
One of a director’s most important tasks is to set up your company’s payroll – to pay salaries, and account for income tax and NIC liabilities.
What is VAT, and do i need to register my limited company?
What is VAT and when does a limited company need to register? A clear guide to VAT registration thresholds, schemes, and deregistration rules.
CGT and business asset disposal relief (BADR) for directors – explained
Guide for company directors on Capital Gains Tax and Business Asset Disposal Relief. Understand rates, rules, and how to claim the relief in 2026/27.