Whose hand will you hold?
Corporate taxes can be a minefield. Let us guide you through ….
Before thinking tax, make sure corporate is right for you.
Click here to read about whether corporate status is right for you
Assuming that being a corporate is desirable and you wish to move forward with this you will need a hand to hold as there is a sea of taxes awaiting you.
What taxes are they?
Corporation tax
That which your company pays on your profits.
Typically much lower than your sole trader or partnership.
PAYE and NIC
Tax and National Insurance on what you take as a salary
And it is not just about paying Tax and NIC – alongside this your company becomes an employer and has to consider minimum wage and auto enrolment (pension) obligations.
Employer’s NIC – what the company will pay on top of what it pays you.
Class 1A National insurance
For benefits in kind. If you’ve had cash equivalents or benefits (like a company car) then the company will pay this.
S455 tax
Get your remuneration planning wrong and you could end up owing your company money.
https://www.gov.uk/directors-loans/you-owe-your-company-money
In turn your company gets taxed heavily for the error.
S455 tax is reclaimable once you’ve straightened up your affairs but it is a massive burden on cash flow.
Get a plan. Put it into action and you won’t have to worry.
As you can see from this short list of some of the key taxes there is much to consider.
Once you have navigated this sea of taxes being a corporate is often an advantage but you HAVE TO GET IT RIGHT FROM THE START.
Be well informed and contact us now. Good initial advice can save you a lot of pain later.