Limited companies
The legal and taxation regime for limited companies continues to change. The main rate of corporation tax commencing 1 April 2012 is 24%, while the small profits rate is 20%.
…
This content is only available to our registered users.
Please log in or create a free account, to gain access to our extensive business, personal and tax guides.
The tax system for companies
Details of corporation tax and company tax returns. moreAssociated company tax rules
If two or more companies are controlled by the same person or by 'connected persons' (such as husband and wife, or father and daughter), the amounts above are divided by the total number of companies. moreTax and the company car
Details of how the tax system works with company cars. moreCompany bonus or dividend?
In many small companies, the owners are also the directors, and this gives considerable scope for deciding how profits should be taken out of the company. moreEntrepreneurs' relief
The relief is intended to produce a net tax rate of 10% on the disposal, although for those making modest gains there is a slight increase in the actual tax burden compared to that payable under business asset taper relief because the CGT annual exemption saves less tax under this relief (at 18%) than it did under taper relief (at 40%). moreTax saving strategies
Expenditure incurred before the company year end might reduce the current year's tax liability instead of next year's. Bringing forward expenditure by even a few weeks on, for example, building repairs, advertising, sales and marketing campaigns, and any other item deductible from profits can accelerate the tax relief by twelve months. moreClaiming expenses - it's all or nothing
The rules which determine what expenses can be deducted from profit for tax purposes are essentially the same whether you trade through a limited company or a sole trade or partnership. moreBenefits in kind and expenses payments
Benefits in kind are assessed on all directors and employees whose salary and benefits combined are £8,500 or more. Remuneration by way of benefits is often attractive to employees, especially if they are paying the higher rate of income tax, because the benefit may either be tax free or subject to less tax. moreCorporation tax
Details of corporation tax rates and bands. morePenalties for late returns
Make sure you do not become liable to any of these penalties. moreMain capital allowances
A summary of the main allowances available. moreIndustrial buildings allowance
Capital allowances for the construction costs of industrial buildings or structures fall under several different headings, but collectively they are known as industrial buildings allowances. moreInterest and tax payments
HM Revenue & Customs charges interest on underpayments of tax, and pays interest (repayment supplement) on overpayments. The rate of interest paid on overpaid tax is lower than the rate charged on underpayments, and interest rates are adjusted frequently in line with commercial interest rates. moreBusiness deductions
In order to attract a deduction in computing the profits of a trade or business any expenses must be incurred wholly and exclusively for the purpose of the trade. Capital expenditure is not an allowable expense (capital allowances are claimed on these costs), and certain other expenses are barred by statute. moreCompanies Act 2006
The Companies Act comprises approximately 1,300 sections and introduces new legislation which reflects the changing business environment. moreCompanies House - forms you need to know about
There are over 100 forms prescribed by the Companies Act 2006. We list below the main forms and include a link to all the forms which can be downloaded direct form Companies House. moreShould you form a limited company?
We are often asked, 'Should I form a limited company?' The reality is that there is no easy answer. Each situation has to be judged individually. As well as the obvious issues of tax and national insurance. moreBuying a company 'off the shelf'
If time is an important factor, you can consider buying a ready-made company. The exact procedure will depend on the company formation agents, including online agents, involved. moreThe law and directors' responsibilities
Who is a director? What are their legal responsibilities? moreStatutory records
It is essential that you keep your company's statutory records up-to-date. Do not underestimate the importance of these records - they are definitive proof of the company's legal existence and its members. moreThe company secretary
The position of company secretary in a private company is now optional. Thus a company can operate with a sole director. moreEssential record keeping
Suggestions on how to reduce the time taken in accounts preparation. moreGetting the company struck off
A private company (not subject to insolvency proceedings) can apply to the Registrar of Companies to be struck off the register and dissolved. moreCould your business survive without you?
As accountants and business advisers we get to know our clients very well. From our position, it is all too clear to us that many clients are too focused on 'today' to give serious thought to the future. more'Green' travel arrangements
There are a number of schemes intended to encourage employers to make arrangements for their staff to travel to work by more environmentally beneficial methods. moreKnowledge centre
- Business
- An outline summary
- The cuts revealed in their full extent
- Lessons and challenge from the Spending Review
- Low carbon economy
- Transport
- Pensions
- Tax
- Employment and PAYE
- What they said about the Comprehensive Spending Review
- In advance of the Review
- Business start-up
- Limited companies
- The tax system for companies
- Associated company tax rules
- Tax and the company car
- Company bonus or dividend?
- Entrepreneurs' relief
- Tax saving strategies
- Claiming expenses - it's all or nothing
- Benefits in kind and expenses payments
- Corporation tax
- Penalties for late returns
- Main capital allowances
- Industrial buildings allowance
- Interest and tax payments
- Business deductions
- Companies Act 2006
- Companies House - forms you need to know about
- Should you form a limited company?
- Buying a company 'off the shelf'
- The law and directors' responsibilities
- Statutory records
- The company secretary
- Essential record keeping
- Getting the company struck off
- Could your business survive without you?
- 'Green' travel arrangements
- Business finance
- Partnerships
- Your customers
- Your employees
- Sales and marketing
- IT and e-business
- Business regulations
- Business and the environment
- Selling your business
- Personal
- Tax
- Links