What is the most tax efficient salary level for a limited company director during the 2023/24 tax year?
Contractor Tax Guides
- 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 all of your company's accounting needs.
- If you're an umbrella contractor, then your tax and accounting needs are very simple, as you're taxed as a standard employee. Tax and NI deducted at source.
- How are dividends taxed?
- What is a director's loan?
- The most tax efficient salary for a director
- Limited company expenses your company can claim
- Taxes your limited company must pay
- What is the Employment Allowance?
IT contractors and VAT – what it is, how to register, avoid penalties
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.
Self-assessment – what are payments on account?
Payments on accounts are part of the self-assessment process and mean that you have to pay your next year’s income tax liabilities in advance, based on the amount you owed on your last tax return.
Calculate the tax cost of buying a car through your limited company
If you buy a car via your own limited company, there are several tax considerations to consider. Read our no-nonsense guide to work out the real cost.
The optimum salary for limited company directors in 2022/23
If you are a limited company director, what is the most tax-efficient salary to pay yourself in 2022/23? This depends on your eligibility to claim the Employment Allowance.
Dividends – what are they, and how much tax do you pay?
The profits generated by UK companies of all sizes can be distributed to shareholders in the form of dividends. Limited company professionals, such as contractors, typically draw down the bulk of their earning as dividends.
Employment Allowance – is your limited company eligible?
Limited company owners can save hundreds in tax thanks to the Employment Allowance, which allows companies to reclaim up to £5,000 in Employers’ National Insurance Contributions.
National Insurance for limited company contractors
A guide to National Insurance for IT contractors. How NI works, and the prevailing rates and thresholds for employees’ and employers’ NICs.
What happens if you overpay company dividends?
When it comes to paying dividends to shareholders, the first thing a company’s directors should do is to check how much profit is available to be distributed. But what happens if you have overpaid dividends?
What is a director’s loan? Guide for limited companies
At some stage in your career, you may need to borrow funds from your company in the form of a director’s loan. Here we look at how loans are treated for tax purposes, and why timing is everything.
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