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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15707
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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As simply as possible please answer the following: I own a

Customer Question

As simply as possible please answer the following:
I own a Limited Company, i am the sole employee/director.
Do I have to pay corporation tax and Self assessment?
Please explain dividens as simple as possible, and what I need to pay tax on
Do I need to pay national issurrance
If my profit is £50,000/Month what tax would I pay
If I bought a car primarily for business use, is that tax deducatable?
What other things can i deduct from tax [I work in a home office]
When keeping records, Do I HAVE to record every transaction of buying stock etc Or can i sum it up as a monthly total for buying stock.
Submitted: 5 months ago.
Category: Tax
Expert:  TonyTax replied 5 months ago.

Hi.

Your company will pay corporation tax on any trading profit it makes. As a director, you should register for self-assessment and complete an annual tax return. Whether you will have any tax to pay personally or not will depend on the level of income you take from the company and whether it is in the form of salary or dividends or both.

Take a look here for information on dividends. The first £5,000 of dividends not covered by your personal allowance will be taxed at 0%. Assuming your total income is no more than £43,000 in 2016/17, you will pay tax at 7.5% on the balance of your dividends. In your income exceeds £43,000, the dividends above that level will be taxed at 32.5%. Use the calculator here to play with some figures.

You will NIC if your salary exceeds £8,060 per annum. Look here for the NIC thresholds.

If your company made £600K in profit in a year, it would pay corporation tax of £120,000.

If you had a company car which was available for private use, the company could claim capital allowancess which would reduce its tax liability but you would pay tax on the car benefit. Look here and here for more information.

Look here for the types of business expenses you can claim.

You should detailed records. Don't dispose of any receipt, no matter how small.

Look here for information on using your home as your office.

Customer: replied 5 months ago.
Please answer all questions in detail, not just linking to sources, and using other lingo. Thank you.
Expert:  TonyTax replied 5 months ago.

There is no point in me cutting and pasting text from websites or even me rephrasing things. None of the links are use are difficult to follow. Most people who ask questions here are happy to have links to information that they can refer to long after they have asked their questions. There is so much to dividend tax, for example, I could spend hours on that but its pointless when I can give you the basic and refer you to a very good site for more detail. The internet has opened up tax to the masses and I encourage them to use it. Frankly, a a large part of my work on this site and that of other experts here is pointing people in the right direction so they don't have to keep asking the same question every year.

If you tell me where you need further clarification, I will be happy to provide it but for $25 you cannot expect the earth.

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