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.
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?
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.
Capital Gains Tax (CGT) explained – rates, exemptions (2026/27)
Learn how Capital Gains Tax (CGT) works, current 2025/26 rates, exemptions and when contractors and company directors may need to pay it.
What is a P11D, and when does a company director need one?
When running a company for the first time, you’ll come across lots of new teminology. When it comes to payroll, one of these terms may be the ‘P11D’.
Dividend tax guide for limited company directors
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.
The optimum limited company director salary in 2026/27
If you are a limited company director, what is the most tax-efficient salary to pay yourself in 2026/27? This depends on your eligibility to claim the Employment Allowance.
How much is the tax free dividend allowance in 2026/27?
The dividend allowance means the first £500 of dividends you receive are tax-free. But how does this allowance work in practice in the 2026/27 tax year?
Employment Allowance – is your limited company eligible? (2026/27)
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.