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Saving more on VAT and corporation tax

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    Saving more on VAT and corporation tax

    hi
    i am a limited company and trying to find out ways to save the tax and maximise the take -home payment. Please would users suggest how to achieve it. my chartered accountant is cheap but somewhat useless.
    I would like to included items such as :
    car
    home
    electrical fixtures and services installation
    laptop and printer
    diesel/ fuel

    please suggest
    thanks.

    #2
    You read the newbies guide to the right and if you have any questions you use the search function in the welcome forums.

    You also get yourself a good contractor accountant that uses FreeAgent. There is a stickied thread with accountant recommendations.

    This is something you'll have to do. There is far too much for us to cover for you and we don't need to. Plenty of documentation for you to digest and your accountant to speak to.

    Oh and google is your friend.
    Last edited by northernladuk; 2 October 2016, 18:28.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Your options are very simple. They are life style choices really.

      a) As a very simple rule to saving tax using a Ltd: take out as little cash as is possible from the company. Wind it up n years later and enjoy the windfall.

      b) Personally I'd rather live whilst I'm earning. That means paying tax. You could withdraw to the upper limit using a combination of dividends + minimum salary.
      "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

      Comment


        #4
        Originally posted by abc111 View Post
        my chartered accountant is cheap but somewhat useless.

        Comment


          #5
          Originally posted by abc111 View Post
          hi
          i am a limited company and trying to find out ways to save the tax and maximise the take -home payment. Please would users suggest how to achieve it. my chartered accountant is cheap but somewhat useless.
          I would like to included items such as :
          car
          home
          electrical fixtures and services installation
          laptop and printer
          diesel/ fuel

          please suggest
          thanks.
          How about:
          holidays
          clothes
          food
          school fees
          TV
          entertainment
          beer
          gifts
          Will work inside IR35. Or for food.

          Comment


            #6
            Originally posted by abc111 View Post
            hi
            i am a limited company and trying to find out ways to save the tax and maximise the take -home payment. Please would users suggest how to achieve it. my chartered accountant is cheap but somewhat useless.
            I would like to included items such as :
            car
            home
            electrical fixtures and services installation
            laptop and printer
            diesel/ fuel

            please suggest
            thanks.
            I would (seriously) suggest above anything else find a new chartered accountant.
            ______________________
            Don't get mad...get even...

            Comment


              #7
              Just put anything you like through, as long as you've got receipts it'll be fine
              ǝןqqıʍ

              Comment


                #8
                Also make any relatives/friends/strangers/lovers directors of your Ltd if they don't work. You can then use their tax allowance to take all that lurvley loot out tax free, give them 2% for their trouble, it's a win win situation

                Comment


                  #9
                  Originally posted by VectraMan View Post

                  How about:
                  holidays
                  clothes
                  food
                  school fees
                  TV
                  entertainment
                  beer
                  gifts
                  All very sound suggestions - Keep those ideas coming ..

                  How about lottery tickets?
                  Work in the public sector? Read the IR35 FAQ here

                  Comment


                    #10
                    Originally posted by abc111 View Post
                    hi
                    i am a limited company and trying to find out ways to save the tax and maximise the take -home payment. Please would users suggest how to achieve it. my chartered accountant is cheap but somewhat useless.
                    I would like to included items such as :
                    car
                    home
                    electrical fixtures and services installation
                    laptop and printer
                    diesel/ fuel

                    please suggest
                    thanks.
                    Generally speaking, if your company pays for things which are not wholly and exclusively for the business of that company, you will be taxed on the benefit-in-kind - so full whack tax and Class 1A NICs. Can be inefficient.

                    Company cars are *usually* less efficient than just paying for them yourself, as the BIK tax will be high. You can get 45p/mile tax free if using your own car. Unless you do millions of miles, or something. If your company pays for private fuel, HMRC will come and bugger you silly, and you'll pay more tax on the Car Fuel BIK.

                    If the laptop/printer are genuinely for business, then you can put it through.

                    You can have £4/week tax free for using your home as an office. Electrical fixtures and services - not a chance. Or rather, two chances - fat and slim.
                    Taking a break from contracting

                    Comment

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