The Flat Rate VAT scheme simplifies the way companies have to account for VAT. Here we explain why IT contractors, and other limited company professionals could pay less tax each year by switching to the FRS.
Tax / Accounts
- 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.
- Limited company contractors have to account for a) company tax, and b) personal tax, but a good contractor accountant can do this on your behalf.
- Find out about the taxes you'll encounter as a contractor, and how to pay yourself as a contractor.
- Find out how much contractor accountants charge in our contractor accountants comparison table.
Expenses – how professional subscriptions / memberships are treated
How are subscriptions to professional and trade organisations treated for tax purposes, and what determines whether or not your membership of a particular organisation is tax-deductible?
Electric vehicles – a tax efficient alternative for contractors?
The number of tax breaks open to contractors is perhaps at an all-time low, however, electric vehicles offer one option that many contractors may still be overlooking.
Has the Cloud made contractor accounting simpler than ever?
With the almost universal adoption of Cloud software by specialist contractor accountants, is any accounting ‘hassle’ associated with being a limited company contractor now a thing of the past?
How much will the April 2016 dividend tax changes cost you?
On April 6th 2016, the dividend tax system was overhauled, resulting in a significant tax hike for most limited company owners. Here we explain how much this new measure will cost you, including a comparison table.
Guide to dividend taxation – before April 2016
Before the dividend taxation regime was overhauled in April 2016, the tax payable on dividends was calculated via a system of ‘grossing up’ net dividends via a tax credit system.
Timing is everything – how to avoid your dividends falling into the wrong tax year
With many contractors keen to draw down significant dividend income before the new dividend rules commence on 6th April, we look at the crucial issue of timing and when, legally, dividend payments are deemed to have been made.
What are Benefits in Kind, and how are they taxed?
If you receive any services or benefits from your contractor company, in addition to your salary, they may be classified as ‘benefits in kind’ – and taxable. Here, we look at how such items may be taxed, and some of the common errors made by contractors when it comes to reporting these benefits.
What is depreciation, and how will it affect your accounts?
Depreciation is the accounting term for the devaluation of assets over time. Here we look at how any assets you may buy (such as a new server or PC) are treated for tax purposes in your company accounts.
Bad accounting habits to give up in the new tax year
The end of the tax year is fast approaching, which means you may be thinking about making a few resolutions to help you run your business better over the next 12 months.
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