The question of whether to run a business as a limited company is a major decision. Here we look at some of the key areas to consider. Tax implications Income tax vs corporation tax For limited companies, it is the company and not the director-shareholder that pays tax. The current rate for corporation tax is … Continue reading Running Your Business as a Company
HMRC are calling on powers to recoup taxes from directors, which their companies have failed to pay due to insolvency. Directors are being asked to repay overdrawn loan accounts and dividends that have been withdrawn where there were insufficient retained profits. HMRC were seen to exercise their powers in the case of Parmar v HMRC . … Continue reading HMRC Look to the Directors of Failed Companies
With the Dividend Allowance set to be cut from £5,000 to £2,000 from April 2018, we consider how investors can help to mitigate the impact of the change. A brief overview 2016 saw significant changes to the rules on dividends, with the introduction of a new Dividend Allowance (DA) of £5,000 per annum, as well … Continue reading Planning for the Dividend Allowance Cut
The various tax allowances available to individuals in 2017/18 mean that it is possible for directors with a substantial credit on their director’s loan account to extract up to £22,500 out of the company and incur no personal tax. This table illustrates how it works: 2017/18 Personal allowance: this is the amount of income an … Continue reading Tax Efficiency and the Directors Loan Account
So, the 6th of April brings in the new tax year with new rules, but what are the changes? Personal Allowance - increases to £11,000. Personal Savings Allowance - if you are in the 20% band for income tax, you will pay no tax on the first £1,000 of interest you get from savings. If … Continue reading New Tax Year – New Rules!
The way they are taxed may be changing, but the other rules and procedures surrounding dividend payments have not. Here is a brief re-cap of the key actions and considerations to bear in mind when making dividend payments: There must be distributable reserves in the business that cover the dividend payments. This is company law and … Continue reading Dividends – What Isn’t Changing?
The end of the tax year of 5 April is fast approaching, and this is always a good time of year to think about ways to structure your business and personal finances so that they are as tax-efficient as possible. With new rates and various legislative changes due in the 2016/17 year, here are some … Continue reading Ways To Save Tax Ahead Of The 5 April Year End
Read Green & Co's article on the important changes to the affect dividends from April 2016, featuring in this month Torfaen Business Voice February edition. Last year the budget brought with it unwelcome news for directors of private limited companies who extract most of their income via dividends. The Government is abolishing the dividend tax credit as … Continue reading Green & Co Feature In Torfaen Business Voice
From 5 April 2016 the taxation of Dividends is changing and this is likely to significantly increase the tax that you have to pay. The good news is that you do not have to pay tax on the first £5,000 of your dividend income, no matter what other income you have. However the tax you … Continue reading New Tax Year – New Dividend Rules…
With winter fast approaching, take the weight off your feet and chill as we bring you up to date on everything you need to know this season! Green & Co Winter 2015 Newsletter This edition focuses on: Property Tax Relief: Winners And Losers All Change For Dividends Pension Allowances: The Next Steps Tax Round Up … Continue reading Winter 2015 Newsletter