If you’re a director of a limited company, you probably pay yourself a mix of salary and dividends to keep taxes low. For the last few years, the best salary for tax efficiency has been £9,096 per year, because it gave you maximum Corporation Tax relief while avoiding PAYE tax, National Insurance, and still qualifying
Category Archives: PAYE
We love working with our clients, but let’s be real – nobody enjoys chasing emails about deadlines. So, to keep things running smoothly, here’s a handy guide on when you can expect your accounts, tax returns, payroll, and everything in between to be completed. Key to Timelines ✅ Timelines below are based on receiving all
When you dreamed of running your own business, you probably didn’t kick your heels in delight for the day you’d have to deal with tax codes! While a good understanding of them is needed to avoid paying more tax than necessary, they’re really not as complicated as they seem. Let’s look at how to find
As a limited company owner, you’ll most likely pay yourself using a combination of salary and dividends. While it’s often the most tax-efficient way to withdraw money, be careful! Dividends have different tax rules compared to a normal salary. Don’t worry – we’re going to walk through what they mean for your business and how
What Are Payments on Account? The payments on account system is designed for people with untaxed income sources like the self-employed, partners in partnerships, or those with investment, rental, or dividend income. Unlike PAYE (Pay As You Earn) where tax is taken directly from your salary or pension each month, these payments cover income that
As an ambitious entrepreneur, you often feel like there aren’t enough hours in the week. You’re busy with running the day-to-day operations, managing team members and, well, life. It means you’re left with little time to stop and consider how you can save on tax. Yes, tax can be an absolute minefield if you’re unprepared,
If you are a sole trader, you can simply take money from your business bank account to pay yourself as a sole trader (we strongly recommend that you use a separate business bank account for your sole trader finances). And you need to make sure that you keep a record of these drawings, along with
When you decide to form a limited company you are creating a separate legal entity with its own legal framework and accountabilities. Any profits or losses incurred belong to the company. So, when you’re managing the company you need to treat it as a separate entity. Even if you’re the sole director and sole shareholder,