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[31 Mar 2011 | No Comment | ]
Director shareholder payments 2011/12

There is an established working practice whereby directors of small limited companies (typically “one man” limited companies) reward themselves with a combination of small salary and big dividend. The point of doing this is to stay within the law, and to hand over the smallest possible sum of money to HM Revenue & Customs. In order to benefit from this working practice you must follow the system precisely. Failure to do so may lead to the imposition of a deduction of PAYE from your income and possibly a charge to …

on the bridge »

[31 Mar 2010 | No Comment | ]

There is an established working practice whereby directors of small limited companies (typically “one man” limited companies) reward themselves with a combination of small salary and big dividend. The point of doing this is to stay within the law, and to hand over the smallest possible sum of money to HM Revenue & Customs. In order to benefit from this working practice you must follow the system precisely. Failure to do so may lead to the imposition of a deduction of PAYE from your income and possibly a charge to …

on the bridge »

[2 Mar 2010 | One Comment | ]

You can link directly to this article using the short URL http://bit.ly/c2Uw5g

Often there’s little logic in tax law

If you ever look closely at your accounts and tax return (you do look closely, don’t you?) you may notice that they include depreciation and/or capital allowances. And you may notice that the bottom line figure for depreciation and/or capital allowances is usually different.
That’s because depreciation is calculated based on established accounting practices, and capital allowances are based on the rules set out in the Taxes Acts. And no matter which method you …

on the bridge »

[9 Dec 2009 | No Comment | ]

You can link directly to this article using the short URL http://bit.ly/8QfLLj

Claiming tax relief on the big things

All businesses can claim tax relief on business expenses. That can include items that you bought before the business started! Do you have a laptop, and any other IT kit? Is your office equipped with a desk, a chair and a book case? Here’s a typical list of things that you might be introducing. There may be things on this list that you should ignore, and there may be other special things (in …

on the bridge »

[17 Sep 2009 | No Comment | ]

You can link directly to this article using the short URL http://bit.ly/n4at8

Will I pay tax twice?

For tax purposes, all of your income in a single tax year is lumped together and the tax calculation is a single exercise. Nobody should have to pay tax twice.
However, with National Insurance Contributions, the system is peculiar and there is often a risk of paying too much.
Having said that, both the Revenue and the Contributions Agency have been know to make mistakes, lots of mistakes. So it’s worthwhile having an accountant check the position.
If …