Capital allowances allow you to claim tax relief on assets you buy for your business. The value of these items can be offset against your company’s profits over time. So how do capital allowances work in practice?
- Limited company contractors have to account for company tax (Corporation Tax, VAT, Employers' NICs), and personal tax (Dividend Tax, Income Tax, Employees' NICs). In reality, a good accountant can take care of almost off of your administrative tasks.
- If you're an umbrella contractor, then your tax and accounting needs are very simple, as you're taxed as a standard employee - with tax and NI deducted at source.
- Find out about the taxes you'll encounter as a contractor, and how to pay yourself as a contractor.
The majority of IT contractors are VAT-registered. In this guide, we look at what Value Added Tax is, how and when you must register, and how to account for VAT and pay your liabilities on-time.
There may be times when you want to drum up some new business by entertaining a would-be or existing client, but you may be unsure if you can reclaim the costs from your contracting business.
If you are contracting and have young children, you may be able to take advantage of a Government-run tax incentive which allows you to pay a proportion of your childcare costs out of your pre-tax income.
Investing in improving your own skills or those of your employees can give you a crucial edge when it comes to pitching for new contracts. However, before funding training via your limited company, it’s important to know what you can – and cannot – claim as a deductible expense.
Since the 2016 dividend tax hike, many limited company owners will be keen to minimise their exposure to punitive levels of taxation wherever possible. The timing of dividend declarations is an integral part of this strategy.
If you set up as a limited company contractor, you will have to pay Corporation Tax on your company’s profits. Here, we explain how CT works, how to register, and when to pay your tax liabilities to HMRC.
It’s that time of year again – the start of April 2018 brings with it changes to a number of tax rates and bands, as well as a cut in the dividend allowance.
If you want to declare a limited company dividend, you must create two documents each time – board meeting minutes to record the director’s decision to distribute company funds, and a dividend voucher for each shareholder. Includes example templates.
If you haven’t managed to file your tax return yet, all is not lost. Emily Coltman FCA, chief accountant to FreeAgent, explains what you need to know.