What does the ‘Personal Tax Allowance’ mean?

Every person who is resident in the UK is given a personal allowance each tax year. It operates as follows: The personal allowance is the amount of income you can receive before paying tax – and it generally increases each tax year.  For the 2019/20 tax year, it is...

Can paying dividends reduce your Company’s tax bill?

No it can’t.  A Company pays Corporation Tax on its profits before dividends are paid out.  Consequently, shareholders are treated as having already paid some tax on their dividends but they do have 7.5% dividend tax to pay (on dividends above £2,000) and shareholders...

The tax timetable for electric cars

Electric cars were not Tax efficient but they will be! For a couple of years I have been saying that electric cars for Company owners are tax efficient with 100% write-off against profits in the year of purchase, and low benefits-in-kind on the director/employee....