Chris Thorpe looks at some considerations when extracting profits out of limited companies. Once a sole trader or partnership has incorporated, the owner or partners can no longer help themselves to the business’s profits at will; such individuals were previously subject to income tax and National Insurance contributions (NICs) based on those profits, irrespective of […]
Making a Withdrawal! Company Profits Read More »
Jennifer Adams explores where company owners might get useful short-term loans. The cheapest personal bank loan rates are double what they were 18 months ago, though this has stabilised recently. Currently, the best loan interest rate between £7,000 and £25,000 is 5.9%. However, there is a source of finance from which a director or participator
Company Loans for the Owners Read More »
Richard Curtis suggests possible alternatives to salary and dividends. Many in business will trade through the medium of a limited company and the directors will generally be remunerated by the payment of dividends or salary. The former are taxed on the recipient and must be paid out of profits subject to corporation tax, while the
Not the Usual Suspects! Read More »
Notes there are instances where choosing to take a benefit-inkind rather than salary may not produce a reduction in tax or National Insurance contributions for employee or employer. Remuneration comes in many guises, usually as salaries, bonuses or benefits-in-kind, all being subject to tax and National Insurance contributions (NICs) unless the payment or benefit is
Going to the OpRA! Read More »
This blog is about what is the 45p tax. The tax was introduced in 2010 as part of a package of tax measures designed to help offset the cost of the economic downturn and the subsequent recession. At that time, the tax was set at 50%. It was later reduced to 45% in the 2012-13
What is the 45P Tax? Read More »
When considering the best vehicle through which to operate a business, tax is a major consideration which can affect that decision, but it’s not the only one; practical and legal issues should be considered as well. A limited company is a ‘body corporate’ (i.e., a separate legal person). The company owns the assets, the profits,
New Business: Company Or Partnership? Read More »
Let’s kick off our discussion about what is a P14 form. In the UK, the P14 form is an important document that employers use to report their employees’ end-of-year payroll information to HM Revenue and Customs (HMRC). It’s a part of the PAYE (Pay As You Earn) system and provides crucial details about each employee’s earnings,
What is a P14 Form? Read More »
Are you tired of being overburdened and looking for ways to reduce the tax burden and be tax-efficient at the same time? In this guide, we will talk about how to make the most of your ISA contributions and dividend allowance to reduce your tax liability and maximise your investment returns. Strategies such as maximising
How to Reduce Tax Burden on Salary? Read More »
If their profits are high enough, the self-employed pay two classes of National Insurance contribution – Class 2 and Class 4. Class 2 contributions are flat rate contributions of £3.15 per week for 2022/23. It is the payment of Class 2 contributions that enables a self-employed earner to build up entitlement to the state pension
National Insurance Changes for the Self-Employed Read More »
Despite the increase in National Insurance Contributions (NIC) in the April 2022 Spring Statement (the increase being replaced by the Health and Social Care Levy in July 2022) there remains a significant financial advantage for individuals working as self-employed rather than as employees. However, complications can arise where an individual is both employed and self-employed
NIC Position If You Are Employed and Self-Employed, Maximum Contributions and Deferment Read More »
