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.
salary
Readers questions: I’m in my first year of running my limited company, and I am the Director and only employee. I haven’t paid myself any salary in this tax year yet, because I earnt a salary in this tax year before I set up my business. My Limited Company will reach it’s one year anniversary in mid-May 2020. My question is, is it tax efficient to pay myself £8632 next financial year, and before mid-May when my Limited Company reaches its 1st anniversary, to minimise corporation tax payment?
[continue reading…]Readers question: How do I pay myself as an employee of my limited company?
So, you’ve done it. You’ve had an idea, you’ve launched a business, it’s even started to grow. Congratulations; you’ve cleared your first set of hurdles. But what do you do next? You have information coming at you from every angle. Demands on your time are growing and your available time is dwindling. How do you know which information matters? And how do you keep the momentum going, or even build to the next level? Every business is different, but some requirements are universal, and some data should never be overlooked.
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.
In a small business, it can be exciting when work is overflowing. Busy times are usually indicative of success and growth. Working around the clock to ensure your business’s success can be rewarding and exhausting. So how do you know when it’s time to hire someone new? If you’re turning down work, that’s a solid sign that you do need some help in the office. However, every business will grow differently. It’s important to consider all your needs before taking on a new employee.
Gender pay gap in the workplace is an issue that has been high profile and has had extensive media coverage. It’s a problem that has been plagued and needs to be addressed. Although many big companies have been forced to make changes to their unequal and unfair pay policies, small businesses also need to take notice.
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As a limited company director, you will usually pay yourself a small salary, and draw down most of your income as dividends. Are there any rules which govern the level of salary you take, and what are the tax implications?
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In a recent study conducted by the Federation of Small Businesses (FSB), it was found that the percentage of small businesses that have increased the wage for their employees is the highest it’s been in three and a half years.
Outsourcing is a vital part of the contemporary business model – more and more serious companies are turning to hiring remote workers each day. Whether you’re in need of a temporary employee, or you’re looking for serious talent to add to your team permanently, remote employment is the way to go.
One of the biggest recruitment challenges faced by businesses is a lack of applications. In a recent survey conducted by Forde HR Cloud, 23% of SMEs revealed that this is their main recruitment issue.
There may be a time that you have to say goodbye to your small business, whether it’s because you’re a serial entrepreneur and want to make money from your successful business or you simply want to get rid of your struggling business. The key to successfully selling your business is to devise an exit strategy. An exit strategy will help you decide how much money you can make from a profitable business or how much of your initial investment you can retain from a struggling business.
