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.
small business 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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With a new tax year come the new tax rates and allowances. Although there has not been a great significant change in the rates and allowances for 2021/22 compared to 2020/21, the government has announced that a lot of the tax rates will be frozen till 2026. This is due to the pandemic and the current state of the economy because of it.
[continue reading…]If you decide to become self-employed, either on your own (as a sole trader), or with other people (as a partnership), you will be responsible for working out and paying your tax liabilities to HMRC.
For many companies, Keyman Insurance offers vital business protection against the death of a key person. You can also add Critical Illness Cover, which provides an extra layer of protection if the key person becomes critically ill. The most common critical illness claims are for cancer, heart attacks and strokes.
[continue reading…]Throughout lockdown, the Government has made significant financial contributions to UK businesses to help mitigate the economic impact of the pandemic by way of a £330bn war chest. Now that Britain is re-opening and adjusting to a new normal, HMRC will want to recoup as much of that initial outlay as possible through taxation.
[continue reading…]With a new tax year come the new tax rates and allowances. Although there has not been a great significant change in the rates and allowances for 2020/21 compared to 2019/20, there have been some changes.
[continue reading…]For small businesses running payroll can be a headache and fear of making mistakes means it can be very stressful. Unfortunately, Payroll is difficult, and errors can be expensive. This is why there is a professional body for payroll professionals (CIPP) which has exams which are tough to pass.
[continue reading…]Whether you are self-employed or are running a business on the side, you will have a personal tax account which you should be checking. However, research finds that nearly half of UK workers don’t check their account.
As an employer, managing maternity leave is an inevitable part of doing business. You will be understandably thrilled for your employee, whilst also wondering whether your team will be overstretched, or how this change might hurt productivity. On top of that, you have the financial commitments surrounding UK statutory maternity pay (SMP) to navigate. It can all end up feeling rather admin heavy.
If you are running a small business or a limited company with employees, you will need to get acquainted with a P60 form. Here, Dannielle Stapleton MAAT from Orange Genie brings you a guide to the P60 form, addressing what it is, when you would need one and where to get one.
With Brexit and the uncertainty at No. 10, it’s becoming increasingly hard to predict what upcoming legislation will be enforced and when – leaving businesses, landlords and the self-employed all striving for clarity.
If you are classed as self-employed or have a source of untaxed income, you will be required to complete a Self-Assessment. However, this criteria is vague and many are left confused as to whether they actually need to file the tax return or not.
January 31st has now passed. Most people spent the arrival of February with their tax return submitted well in advance, while others were exhausted after rushing to file it. And a few will have missed the deadline altogether.
Readers Question: I have a trading company with a high level of retained earnings. Rather than liquidate, I am thinking of taking £500k in dividends (grossed up to £555k) and then making a donation to the charity of say £500k (adjustable for tax efficiency), which would extend my basic rate band by £625k. Am I correct in thinking that this combination of dividend and charitable donation is a tax efficient way of charitable giving, in the sense that I would avoid the higher rate dividend taxes?
Entrepreneurs tend to be wearing many different hats and your attention is likely to be on making more money, managing your team etc. Sometimes seeing your accountants can feel like a trip to the dentist. However, if you’re not talking to them, then given the complexity of UK tax rules, you might find yourself making these tax mistakes.
Here are the main small business tax rates and allowances for the tax year of 2019/20.
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Every business owner knows just how exciting starting a business or scaling up can be, but that’s not to say it doesn’t come with its own challenges. Increasing ROI and tax-efficiency are usually at the top of every small business owner’s agenda, and putting procedures in place so that you can enhance cash-flow through becoming tax-efficient doesn’t have to be hard. London based accountancy firm, 3 Wise Bears have put together five tax reliefs and tax incentives that every small business should know about, and how they can apply for them.
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Here are the main small business tax rates and allowances for the tax year of 2018/19.
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