Expert accountancy and bookkeeping services for small Limited Companies

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

Dividends can be a tax-efficient way to take money from a limited company, but they are not as simple as many business owners think. A dividend must be legal, properly approved, correctly recorded and reported in the right tax year. If it is not handled correctly, it can create problems with HMRC, Companies House records, director’s loan accounts and personal tax returns. In this guide, we explain: what a dividend is; the difference between interim and final dividends; who ca

With greater use of home-working now the norm for many UK businesses, it’s important to think about the deductible expenses that you may...

Having the use of a company car is a great perk. But are you aware of the tax impact of a company car and how having this vehicle may...

When you’re the director of a business, it’s likely that there will be occasions where you borrow money directly from your company, or...

HM Revenue & Customs (HMRC) expects you to pay your taxes on time. But if you’re finding it difficult to pay in full, HMRC can be...

When you set up a new company, there are certain business taxes you’ll be liable for as a business. But have you also planned for the...