Readers questions: I’m in my first year of running my limited company, and I am the Director and only employee. I haven’t paid myself any salary in this tax year yet, because I earnt a salary in this tax year before I set up my business. My Limited Company will reach it’s one year anniversary in mid-May 2020. My question is, is it tax efficient to pay myself £8632 next financial year, and before mid-May when my Limited Company reaches its 1st anniversary, to minimise corporation tax payment?[continue reading…]
Ask the Experts
Readers questions: Can I be a limited company if I am a not a UK tax resident? I left the UK 7 years ago and live in Spain. I have been asked by an agency who I will be working overseas for, to supply invoices for work done. Can I issue an invoice to this agency without being registered as a limited company?
Readers’ Question: What happens when a Limited company has only one official Director and that person dies suddenly?[continue reading…]
Readers’ Question: I want to start a business and have looked at both the sole trader and limited company structure. I think that running as a limited company will be better for me. What is the best and most cost-effective way to register a company?
Reader’s question: I’m wanting to open a bar and would be seeking investment from two parties, after the initial investment they won’t have any further involvement, from this I gathered the best way to structure the business would be as a Private Limited Company. My problem is that I am not in a position to contribute financially so would be seeking 100% of the required capital to establish it, which would, therefore, mean they own 100% of the business. Is it possible for me to retain any sort of ownership or portion of shares through a prior agreement?
Reader’s question: I am about to start working for several companies as a self-employed transport consultant. Which would be better for me limited company or sole trader?
Reader’s question: As the sole director of my own company, if I pay myself £200 per week does this mean my corporation tax will be less? And what amount of dividends can I take?
Readers question: I own a limited company that is solvent and, due to medical issues, I wish to close it. My question is, as the MD of the company, can I close it and receive a tax-free redundancy payment of £30,000?
Readers question: I have a limited company and I have taken 1% dividend for my grandchildren to pay for their school fees. I have opened a trust account where this 1% will be put into so let’s say the cost of the fees is £17,000 per annum, how much money do I need to transfer into this trust fund? Also how much corporation tax do I need to pay on this transfer?
Readers question: I incorporated my company name in 2007 with the initials “CLA” included as part of the full name. Recently I received a letter from lawyers representing another company who also use “CLA” in their company name and want me to rebrand and stop using CLA as part of the full name. I noticed they registered a trademark for CLA in 2009. I also notice there are hundreds of companies using CLA as part of their full company name. Can you please advise if I will be forced to change my company name?
Readers question: I want to give my shares from my limited company to my partner, so my question is how do I transfer shares to a partner of my limited company?
Readers question: I bought some goods which I intended to sell via my company before I actually incorporated. These goods were not bought under the company name but instead under my name. Can I still add this to my accounting tool as the cost of goods?
Readers question: I was wondering if I could get some advice about being self-employed and living abroad. I want to open a business account as a sole trader in the UK and pay my national insurance and pension to the UK. However, I live in Slovenia with temporary residency, as I am a British citizen. I live here as I got married to a Slovenian. I wanted to know how can I open as a sole trader as I work from home online teaching on a platform based in Asia. They just pay my salary nothing else. What would I have to pay to Slovenia as I live here and would I have to pay double social security? Or claim my benefits from the UK when I need them. Also, would I need a virtual office in the UK? My students, I just interact with them from the website the company provides.
Readers questions: My partner and I have between us around 30,000 thousand pounds worth of tools/equipment as a sole trader, can we take them over to the ltd company or can the ltd company pay for them? We don’t want money out, we would like to offset our tax bill, can it be done?
Readers question: We have a small Limited Company with a gross turnover of £20,000. We have paid 20% tax on this figure (cis) leaving £16,000 after tax. We have one employee who has earned £12,000 gross. Are we entitled to a rebate and will there be corporation tax to pay?
Readers question: How do I pay myself as an employee of my limited company?
Readers question: As a director of my Limited Company, the majority of my income comes from my contracts, plus my properties and land. Can I still take a £2,000 dividend tax-free regardless of my other earnings which take me to the 40% threshold?
Readers questions: A small limited company has signed an agreement with me to provide certain services when its building project is complete. So my question is if the company is sold on, does the acquiring company have to honour this agreement with me?
Readers Questions: Does limited liability still apply with just one director?
Readers question: I have set up my own catering company at the moment and I am doing the food in a large Irish bar in Edinburgh. I will be paying my employee and buying all the food stock etc. My query is, would I be better off being an employee of my company and paying tax NI as normal with the addition of employer NI, or would I be better to take dividends monthly as my salary, my salary will be £40,000 per annum.