limited company director

Pensions remain one of the last remaining significant tax breaks available to contractors, freelancers and business owners. And with the sweeping changes to the flexibility surrounding how you access your pension, there has never been a better time to invest. There are a variety of pensions for directors of limited company and contractors available.
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There are numerous reasons you may wish to close your limited company, from approaching retirement, switching operating structures due to IR35 reform or as your business has reached its natural end. Driving factors behind operating through a limited company may be the financial set-up and the associated credibility, however, as legislative measures change and employment opportunities vary, limited company contractors may switch structures.

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?

Readers’ Question: What happens when a Limited company has only one official Director and that person dies suddenly?

Many business owners, including contractors, may have found it difficult to secure a competitive mortgage in the past. However, more enlightened lenders and mortgage brokers are happy to provide a mortgage for limited company directors, who may find it hard to prove income on a ‘traditional’ basis.

Readers question: If I have three separate Limited company businesses, can I pay myself a salary/management fee from each one or only the one?

Readers question:  I am one of two company directors in an ltd company. My partner in business has been told by her midwife that she is entitled to 90% of her salary while on maternity leave. For us to pay her, we would need to employ another person to do her job, this would put the business in financial difficulty. Is this the case?

Readers question: How do I pay myself as an employee of my limited company?

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 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?

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If you are running a small business or a limited company with employees, you will need to get acquainted with a P60 form. Here, Dannielle Stapleton MAAT from Orange Genie brings you a guide to the P60 form, addressing what it is, when you would need one and where to get one.

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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?

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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.

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When you become a director of a limited company, you are entrusted with a number of responsibilities and duties, to ensure that you run the company properly, and comply with company law and a wide range of rules and regulations which cover everything from paying your tax on time, to how you treat any employees.
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