Whenever you want to pay yourself either log into your client portal or call your personal accountant to see how much you have available to draw. Payments are normally split between dividends, director’s fees (salary), and out-of-pocket expenses. Your personal accountant will calculate all of these for you to ensure that you are being paid as tax efficiently as possible.
This is entirely up to you. The easiest way to pay yourself is to electronically transfer the funds from your business account into your personal account. We will keep all your dividend vouchers for you to ensure that you and your company are 100% compliant with HMRC.
You are eligible to claim the cost per mile for eligible business travel in your own personal vehicle. Depending on the amount of miles travelled during your company’s financial year will determine the monetary value of your claim. Below is a table which summarises the main travel types using your personal vehicle and the monetary value of eligible claims.
Type of Vehicle
First 10,000 miles 10,000+ miles
45p per mile 25p per mile
24p per mile 24p per mile
20p per mile 20p per mile
It is important that you retain your fuel receipts in support of your mileage claims. If HMRC were to audit your business they may request that these be presented to evidence your claim.
At Exchequer Accountancy Services Ltd we do as much or as little as you would like us to. We would advise you to let your personal accountant process your invoices and expenses, however if you want to take care of this then it is entirely up to you.
Corporation Tax is that which companies pay on all their profits after the deduction of allowable expenses and salaries. The rate of corporation tax for companies whose turnover is less than £300k is currently 20% (2014-2015). Corporation is due to be paid by 9 months and 1 day after the company’s year-end.
You must register for VAT if your turnover for the previous 12 months is more than £79,000 (2014-2015) or if you predict your turnover will go over £79,000 during a given financial period. This figure is known as the VAT registration threshold.
Some income is taxed at source, for instance salary through the PAYE scheme, other income such as dividends are received net of basic rate tax. Your personal tax return compiles your total income and allowances for a tax year and determines your final tax liability or even a tax repayment. A liability is payable in up to three instalments, 31 January before the tax year end (5 April), the 31 July after the year end and a final balance on the following 31 January.
Every limited company has a legal requirement to submit an annual return which ensures that the information held at Companies House is up to date. The annual return needs to be filed within 28 days after the company’s made up date (this is the anniversary of incorporation or the date of the last annual return).
IR35 is a HMRC tax legislation that was introduced to identify contractors who are receiving the tax benefits of working through a limited company when they are really a disguised employee of the client. See Exchequer Accountancy Services Ltd’s guide to IR35 for more information.
Considering switching accountants?
We can help make the switch smooth, quick and hassle free.