The dividend allowance was put in place in April 2016. It means that the first £2,000 of dividends you receive are tax-free. But how does this allowance work in practice in the 2022/23 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 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
What happens if you declare a dividend, but have insufficient profits in the company books to cover the declaration? Patrick Gribben explains how this can happen, and how to correct an error.
There are many legal types of tax relief available for all UK registered companies, no matter their size, that could save you thousands on your annual tax bill. You just need to know what they are, when they apply, and how to use them.
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?
Can you lend personal funds to your limited company, and how are interest payments treated for tax purposes?
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.
Ever since the 2016 dividend tax hike, the timing of dividend declarations by limited company owners has become more important than ever – to minimise their exposure to punitive levels of tax.
If you’ve left your permanent job behind, you need to work out if your income will still be taxed at source, or if you need to join the almost 12 million other taxpayers who submitted a Self Assessment return last year.
If you file your personal tax return (SATR) late, or fail to pay any outstanding tax on time, the resulting HMRC penalties and fines can really start to mount up. Includes some useful tips to keep on the right side of the taxman.
What do you need to include on a limited company invoice to ensure you comply with the law and get paid on time. Includes .doc and Google Drive sample invoices for contractors.