In this article, we give you an overview of the basics of limited company tax as written by the senior accountant from Dolan Accountancy. This includes the various taxes you will be liable to pay (or collect) as a limited company, and when you have to pay them.
corporation tax
As a limited company owner, your company is liable to pay Corporation Tax on its profits. All UK companies are liable to pay tax on their profits, regardless of where in the world these profits were accumulated. We have put together this guide for your to understand what corporation tax is, how to account for it, be able to calculate it and the corporation tax rates and allowances.
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If you set up a limited company, you are not legally required to appoint an accountant, although there are multiple benefits of doing so. In this article, we discuss if appointing a limited company accountant to look after your affairs a statutory requirement, or if can you take care of your accounting duties yourself?
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Readers question: How do I pay myself as an employee of my limited company?
Readers question: I have set up my own catering company at the moment and I am doing the food in a large Irish bar in Edinburgh. I will be paying my employee and buying all the food stock etc. My query is, would I be better off being an employee of my company and paying tax NI as normal with the addition of employer NI, or would I be better to take dividends monthly as my salary, my salary will be £40,000 per annum.
Here are the main small business tax rates and allowances for the tax year of 2018/19.
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Marginal Relief bridges the gap between paying Corporation Tax at the ‘small profits rate’, and the main rate. Businesses are eligible to claim Marginal Relief on profits falling between £300,000 and £1.5m.
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The Research & Development (R&D) tax relief system exists to encourage businesses to invest in innovation. Often misunderstood, and under-claimed by small companies, it can offer substantial benefits to qualifying firms.
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The Treasury’s much-hyped clampdown on ‘tax avoidance’ might not end up being as effective as officials originally planned, with so many experienced HMRC investigators likely to retire over the next five years.
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The press coverage of the current outcry over public sector figures working via their own personal service companies has resulted in many inaccurate tax claims being made by the media.
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