Expert accountancy and bookkeeping services for small Limited Companies

Many limited company owners take money from their company using a mixture of salary and dividends. This can be tax efficient, but only if it is done properly. Salary and dividends are not the same thing. They are taxed differently, reported differently, and have different rules. For small limited company owners, understanding the difference is essential. A limited company owner often has two roles If you own and run a limited company, you may have two separate roles. You may

If you own and run a small limited company, there is a good chance your company is a close company. This is not a new type of company. It is a tax term used by HMRC, and it is becoming more important because HMRC is asking for more information about close companies, dividends and transactions between companies and their owners. From the 2025/26 Self Assessment tax return, directors of close companies must provide HMRC with more detailed information about their company, divide

Many limited company owners ask the same question: “Can I put this through the company?” It is a sensible question, but the answer is not always yes or no. For a company expense to be allowable for Corporation Tax, it normally needs to be incurred wholly and exclusively for the purposes of the company’s trade. This is one of the most important rules for company expenses. It affects what the company can claim, what may need to be disallowed, and whether a cost could create a p

Many limited company directors ask whether the company can pay for clothing. This may include suits, shoes, branded clothing, uniforms, protective clothing or outfits needed for work. The answer depends on the type of clothing and how it is used. The key point is that ordinary everyday clothing is not usually tax-free just because it is worn for work. For limited companies, there are usually two questions to consider: Can the company claim Corporation Tax relief? Will the clo

Business gifts are a common area of confusion for limited company owners. You may want to send a thank-you gift to a customer, give samples to potential buyers, provide small branded items, or give a gift to a member of staff. But the tax treatment depends on who receives the gift, what the gift is, why it is being given, and whether VAT has been claimed. The starting point is simple: Most business gifts are treated like business entertaining, which means they are not normall

Small limited company directors often focus on salary, dividends and pensions when looking at tax planning. But there is another small, useful exemption that is often missed: trivial benefits. Used correctly, trivial benefits allow a company to provide small gifts or benefits to directors and employees without Income Tax or National Insurance. The company can also usually claim Corporation Tax relief on the cost. This does not mean the company can give tax-free cash or disgui

Many small limited company directors try to avoid benefits in kind because they worry about extra tax. That is understandable. A benefit in kind can create a personal tax charge for the director and a Class 1A National Insurance charge for the company. But this does not automatically mean the benefit is a bad idea. In some cases, a taxable benefit can still be more tax-efficient than paying for the same cost personally from after-tax income. The key is to look at the full cos

Many small limited company owners ask whether they should pay themselves a salary, dividends, or a mixture of both. The answer depends on your circumstances, but in many cases, paying a salary is still advisable. This is because salary can help protect your National Insurance record, support your State Pension entitlement, reduce company profits for Corporation Tax purposes, and form part of a sensible profit extraction strategy. A limited company is separate from you A limit

When a company pays for a business cost, many small business owners ask: “Can I claim this through the company?” That is an important question. But there is another question that is just as important: “How much tax will this actually save?” A company tax deduction does not mean HMRC pays for the cost. It means the cost reduces the company’s taxable profit, which can reduce the Corporation Tax due. How much it saves depends on the company’s marginal rate of Corporation Tax. Wh

The date for the 2026 Budget has been announced. The Chancellor, John Healey MP, has confirmed that the Budget will take place on Wednesday 28 October 2026. HM Treasury has also confirmed that the Office for Budget Responsibility will prepare an economic and fiscal forecast to be published on the same day. This is a “heads up” for small business owners rather than a technical tax update. At this stage, we do not yet know what tax changes will be announced. But Budget announce