What is s.455 tax on overdrawn Director’s Loan accounts?

This tax is the result of an overdrawn Director’s Loan Account (DLA).  Here is a brief explanation of how they can arise; the implications, and what to do. An overdrawn Director’s Loan Account (DLA) can often arise accidentally when a Director/shareholder takes money...

Can I make myself redundant from my own limited company?

Oh no! It’s a bit like trying to sue yourself!  As a Director/Shareholder of your own Company, you’ll have no employment contract, so can’t make yourself redundant. Also, as a Director you have a legal duty to act in the interests of the Company – which this...

Annual investment allowance

When a business buys fixed assets, plant equipment, commercial vehicles, IT equipment, fixtures and fittings, it can claim the total cost against its trading profits (effectively reducing your profit for tax purposes). It is done using something called the Annual...

What is The Marriage Allowance?

Many couples are unable to benefit from the Marriage Allowance; AND the maximum benefit is only £238 (2018/19).  But it’s simple to calculate and to claim. It is for Married Couples and Civil Partnerships where one is a Basic Rate Taxpayer (taxable income £11,850...

What is Dividend Tax?

Dividend tax is the unpopular income tax that came into effect in April 2016. Before then tax wasn’t paid on dividends unless you were in the Higher Rate tax bracket. Now Basic Rate taxpayers have had to pay 7.5 pence on every £1 received as dividends – and...