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?
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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.
Readers Question: I was wondering how do I record refunds that I give to clients for services not received in my accounts. Should I amend the invoice or does it go on my expenses side?
Readers Question: I do fostering and am classed as self-employed and I have an accountant that deals with my accounts and also my personal allowances with the tax office. I am thinking of running a property business – buy to let and set up a limited company. Will I need a different accountant to deal with my small business company hence 2 accountants?
Readers Question: Just completed my first “job” as an LTD company, providing professional services. The work was done over a 4 month period in New Zealand and my invoice was submitted to a 3rd party UK agency, net of 15% New Zealand tax. How do I go about proving to HMRC that tax has been deducted and also how to pay the balance of 4% tax owing?
Readers’ question: I am a shareholder in a limited company and receive dividends as payment each month. I am being taxed by the company at 20% as corporation tax before they pay the dividend and then paying up to 32.5% tax as I am a higher bracket taxpayer. So, on the majority of the dividend, I am paying 52.5% tax – is this correct?
Readers’ question: I’m looking into starting a small business and I’m still not sure what the main differences between a sole trader and limited company are with regards to tax implications. What is the more tax beneficial method of running a business?
Readers’ Question: I’ve just completed a job for my first client and I need to invoice them but I don’t know where to start. How do I write an invoice and what should I include?