A limited company can still pay dividends even if it has made a loss in the current year, provided it has sufficient retained profits in its accounts.
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?
BADR (Business Asset Disposal Relief) for company directors
Business Asset Disposal Relief (BADR) lets company owners close down at a reduced CGT rate. Find out the rules, tax rates, and how to claim in 2026/27.
National Insurance guide for contractors – updated for 2026/27
A guide to National Insurance for IT contractors. How NI works, and the prevailing rates and thresholds for employees’ and employers’ NICs.
What taxes do IT contractors pay? Updated for 2026/27
A guide to the main taxes you will encounter as a limited or umbrella company contractor – including; Corporation Tax, VAT, National Insurance, Income Tax and Dividend Tax.
What is the difference between ‘interim’ and ‘final’ dividends?
As a limited company director, you may have come across the terms ‘interim’ and ‘final’ dividends. But what do these terms mean in practice?
Corporation Tax for contractors: how limited companies are taxed
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.
HMRC tax codes – how they affect your take home pay
HMRC assigns tax codes to inform employers how much tax to deduct from an employee’s salary. What these numbers and letters mean for your take home pay.
Overdrawn director’s loan accounts: tax risks for contractors
An overdrawn director’s loan account can trigger Section 455 tax and beneficial loan rules. What you need to know and how to clear the balance.
Can you borrow money from your own limited company?
There may be times where you need to borrow money from your own limited company, or you may have unintentionally done so whilst drawing down funds. What are the tax implications of doing so?
Calculate the tax cost of buying a car through your limited company (2026/27)
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.
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