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

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

What small business owners need to know VAT registration is one of those areas that can catch small business owners out. Many people assume VAT registration is based on their accounting year, tax year or company year end. It is not. VAT registration is based on your taxable turnover, and you must monitor this on a rolling 12-month basis. What is the VAT registration threshold? At today’s date, the UK VAT registration threshold is more than £90,000 of taxable turnover. You mus

Who Needs to Operate a PAYE Scheme? What Small Business Owners Need to Know PAYE stands for Pay As You Earn. It is HMRC’s system for collecting Income Tax and National Insurance from employment income. PAYE is not a separate tax. It is the way employers calculate, deduct, report and pay employment taxes to HMRC through payroll. For small limited company owners, PAYE is especially important because a limited company is a separate legal entity. The money earned by the company b

Pensions are not always the first thing small business owners think about. Most directors are focused on growing the business, paying themselves, managing cash flow and staying on top of tax deadlines. But pensions can be one of the most tax-efficient ways to take value from your limited company. Used properly, pension contributions can help you save for retirement, reduce company profits, and move money out of the company without creating an immediate Income Tax or National

What Small Business Owners Need to Know HMRC has opened a consultation on whether a new criminal offence should be introduced for making reckless, untrue statements or declarations in relation to direct taxes. This is only a consultation at this stage. It is not yet law. However, it is important because it shows HMRC’s direction of travel. The focus is on taxpayers who make statements to HMRC where they know there is a risk the information may be wrong, but they go ahead anyw

Salary and dividends are not the only ways to take value from your limited company. A limited company can provide certain benefits to employees, including directors, without creating an Income Tax or National Insurance charge, as long as the rules are followed. This can be very useful for small business owners because the company may pay for something directly, claim Corporation Tax relief where the cost is allowable, and the director or employee may receive the benefit tax-f

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