Corporation Tax on Limited Company

[Nixon Williams]

It is very easy to reduce your corporation tax to zero, although this may not be the most tax efficient.

Our advice to our clients is not to worry about individual taxes (Corporation tax, VAT, PAYE, NIC etc) but to concentrate on getting the overall tax payments as low as possible.

The aim is to maximise your retained income, do not get too worked up about a high corporation tax bill, as the other tax payments should be lower.

I hope this helps.

Alan

[mavster07]

Is there a quick and easy guide or link out there that explains for newbies how to calculate tax for PAYE, Dividends and Corporations Tax ?

I get a bit confused over the 3.

I keep reading you should pay yourself a low yearly salary and then take the rest as dividends. If so, how do you work out PAYE (incl NI) on that basis (e.g. salary of 5k) and then Dividends / Corporations Tax at year end ??? A good spreadsheet model or calculator would be helpful so it all makes sense.

All suggestions welcomed.

[Drewster]

Is there a quick and easy guide or link out there that explains for newbies how to calculate tax for PAYE, Dividends and Corporations Tax ?

I get a bit confused over the 3.

I keep reading you should pay yourself a low yearly salary and then take the rest as dividends. If so, how do you work out PAYE (incl NI) on that basis (e.g. salary of 5k) and then Dividends / Corporations Tax at year end ??? A good spreadsheet model or calculator would be helpful so it all makes sense.

All suggestions welcomed.

Suggestion 1: Speak to an Accountant
Suggestion 2: ..... there is no suggestion 2. Seriously if you get confused over them its because you don't really understand them, the differences and the possibilities.... An accountant should/will be able to explain them to you and then over time (when you have more than a basic grasp) you may decide that you no longer need an accountant (even though its his job to keep up to date on changes etc and give you advice and even to take some of the faff out of it (my hourly rate is better than his, it takes me longer to do the stuff he does.... so it is Cheaper to pay him)

Please go see an accountant....

[mavster07]

Hi,

Thanks for your reply.

I have to say that I'm not sure why you replied if you weren't prepared to just respond to the question rather than have a poke to suggest I don't understand the aspects of the question posed. All I asked was if anyone knew of any sample models or spreadsheets etc that showed you how to do it. Not every question asked on these forums needs to be met with a smart reply like 'go see an accountant' as if the person asking it is dumb. Show some respect for the people who are new and are just looking for people to share their experiences.

[MarillionFan]

Get an accountant. They'll help you work out the best way.

If you're based in Hampshire, PM and I'll send you mine, they're pretty good and reasonable.

[MarillionFan]

Is there a quick and easy guide or link out there that explains for newbies how to calculate tax for PAYE, Dividends and Corporations Tax ?

I get a bit confused over the 3.

I keep reading you should pay yourself a low yearly salary and then take the rest as dividends. If so, how do you work out PAYE (incl NI) on that basis (e.g. salary of 5k) and then Dividends / Corporations Tax at year end ??? A good spreadsheet model or calculator would be helpful so it all makes sense.

All suggestions welcomed.

Start with this <snip>
[/URL]

[northernladuk]

Hi,

Thanks for your reply.

I have to say that I'm not sure why you replied if you weren't prepared to just respond to the question rather than have a poke to suggest I don't understand the aspects of the question posed. All I asked was if anyone knew of any sample models or spreadsheets etc that showed you how to do it. Not every question asked on these forums needs to be met with a smart reply like 'go see an accountant' as if the person asking it is dumb. Show some respect for the people who are new and are just looking for people to share their experiences.

But he has gone one better. Instead of giving you some half assed links to spreadsheets that make even less sense and could lead you in to making a very expensive hash of it he has used his experience to send you off in the correct direction. This is something we see a hell of a lot of on here and people get in to some real states. His suggesting is the best one for you....

Not that listening is your strong point looking back at some of the long and slightly (cough) incorrect posts you have so lovingly drafted for us.

But anyway.. he is right...

[Drewster]

Is there a quick and easy guide or link out there that explains for newbies how to calculate tax for PAYE, Dividends and Corporations Tax ?

I get a bit confused over the 3.

I keep reading you should pay yourself a low yearly salary and then take the rest as dividends. If so, how do you work out PAYE (incl NI) on that basis (e.g. salary of 5k) and then Dividends / Corporations Tax at year end ??? A good spreadsheet model or calculator would be helpful so it all makes sense.

All suggestions welcomed.

Hi,

Thanks for your reply.

I have to say that I'm not sure why you replied if you weren't prepared to just respond to the question rather than have a poke to suggest I don't understand the aspects of the question posed. All I asked was if anyone knew of any sample models or spreadsheets etc that showed you how to do it. Not every question asked on these forums needs to be met with a smart reply like 'go see an accountant' as if the person asking it is dumb. Show some respect for the people who are new and are just looking for people to share their experiences.

You said you were a newbie
You said you were confused
You asked for suggestions

I showed you every respect and attempted to provide a helpful suggestion
I explained why I thought you should go to an accountant
I gave you the benefit of the doubt about being dumb/not ie I implied that you would be able to learn what you patently don't understand at the moment

You showed me no respect

Listen to what people have told you - but don't expect any helpful answers from me in future.

Yours
Pissed Off with Dumbass Newbie Mavster07