Transferring from a sole-trader or partnership, to a Limited Company is sometimes recommended by accountants for tax planning reasons or to benefit from Limited Liability and they will consider the following issues. When: Work out which side of a tax year end to...
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...
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...
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...
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...
In recent years, for small companies the Corporation Tax Rate has effectively increased from 20% to 25.07% (small UK business had a 6% rise in tax on profits – including dividend tax!). Whereas, from 2006/07 to 2017/18, the main Corporation Tax Rate (for more...
