The tax rules associated with borrowing money from your own limited company are fairly complicated. Therefore, it is important for company directors to understand the rules, guidelines, and tax implications associated with taking out a Director’s Loan.
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?
What is the difference between ‘interim’ and ‘final’ dividends?
As a limited company owner, you may have come across the terms ‘interim’ and ‘final’ dividends. So, what do these terms mean in practice?
HMRC tax codes – how they affect your take home pay
HMRC assigns tax codes to inform employers how much tax should be deducted from an employee’s salary. Here we look at what the series of numbers and letters signify, and how they affect your income.
Tax deadlines limited company owners should be aware of
If you are a limited company owner, you have a number of monthly, quarterly and yearly tax and accounting deadlines to keep on top of. Read this guide to make sure you don’t end up on the wrong side of HMRC.
Marriage Allowance – who is eligible for this £252/year tax break?
We explain how the Marriage Allowance works. It is worth £252 per year, if you are eligible and up to £1,242 if you can backdate your claim by an extra 4 tax years!
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.
What taxes do IT contractors pay?
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.
Dividend vouchers & board meeting minutes – template downloads
If you want to declare a limited company dividend, you must create two documents each time – board meeting minutes to record the director’s decision to distribute company funds, and a dividend voucher for each shareholder. Includes example templates.
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.
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.