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Contractors - PAYE Accountants and National Insurance

Contractors – PAYE Accountants and National Insurance

Income tax and National Insurance contributions, or NICs, are payable on the salary that you pay yourself out of your limited company’s turnover. It is common for contractors who are not caught by IR35 to pay themselves a very low salary (e.g. minimum wage) to keep income tax and NICs to a minimum, taking the […]

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Contractor Accounting - Tax on Dividends

Contractor Accounting – Tax on Dividends

Most contractor accounting operating a limited company will pay themselves a mixture of a salary and dividends, as this allows them to make considerable tax savings. Dividends are payments made to the shareholders of a company – which, in the case of your limited company, generally means you alone. Dividends themselves are not tax-free; they […]

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Contractor Accounting and Taxation

Contractor Accounting and Taxation

The Contractor accounting and Taxation Liability are selling their services through a limited company falls into three areas: Corporation Tax; Tax Payable On Dividends; And PAYE/National Insurance. Corporation Tax The most important tax liability that applies to limited companies is Corporation Tax. This is a levy on your company’s profits, that is to say, the money […]

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Bookkeeping Services for Financial Records

Penalties for Landlords

Reporting to HMRC To avoid penalties for landlords, you must tell HMRC when you start renting out a property and you may have to pay tax return. If you don’t, you could be charged a penalty. You must report income from property rental if you receive:   £2,500 or more from the property after deducting […]

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Tax Penalties for Self Assessment Tax Returns

Tax Penalties for Self Assessment Tax Returns

There are tax penalties for  Self Assessment (SA) tax returns and for late payment of tax due under SA. The late filing penalty system changed for returns and payments from the 2010/11 year onwards. A key feature of the new regime is that the late filing penalty is not reduced if the tax is paid […]

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Penalties for PAYE Accountants

Penalties for PAYE Accountants

As an employer, you normally have to operate PAYE as part of your payroll. PAYE is HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from employment on or before your employees’ payday On or before your Employees’ Payday: Every time you pay your employees, use your payroll software to: Record […]

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Late Filing Penalties for VAT Return

You usually submit a VAT Return to HM Revenue and Customs (HMRC) every 3 months. This period of time is known as your ‘accounting period.’ The VAT Return records things for the accounting period like: your total sales and purchases the amount of VAT you owe the amount of VAT you can reclaim what your VAT refund from HMRC is You must submit a VAT Return even if you […]

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Late Filing Penalties For Limited Company

Late Filing Penalties For Limited Company

All limited companies are obliged to file accounting and other information with Companies House and HM Revenue and Customs (HMRC) each year.  Accounts submission deadlines:  If you are filing of company accounts with Companies House for the first time, you will have up to 21 months from the incorporation date (or 3 months following the accounting reference […]

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Capital Allowance – Things to know about it

Capital Allowance is basically a form of tax relief available to anyone incurring capital expenditure, buying, building or making adjustments to commercial property. Capital allowance let taxpayers write off the cost of certain capital assets against taxable income. They can be best thought of as a reduction in the purchase price of the assets. In […]

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Self Employed vs Limited Company

Self Employed vs Limited Company

Setting up as a sole trader is the simplest way to start a business. You only need to inform HMRC that you are working as ‘self-employed’, and account for your business activities through the annual self assessment tax process. Starting up in business as a limited company is a more complex process, and the financial […]

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