new in ltd trading

[PhilAtBFCA]

Limited Company Tax Breakdown

Simos,

This link gives you a video and a spreadsheet you can use to forecast your net personal income, corporation tax and personal tax.

I hope you find it useful.

Phil

[MPwannadecentincome]

Married man's tax code.

Spend the rest on fast women, slow horses, fat cigars, French restaurants and champagne.

Hmm so that' how married contractors live - I've not been doing it right!

BTW Married man's tax code these days is the same as single man's tax code?

[RichardCranium]

Noooooo

All this time I have been spending my money on fat women, fast horses, french cigars, slow restaurants and champagne.

Buggar.

Pink champagne? AKA contractor's pop?

[Gonzo]

Spend the rest on fast women, slow horses, fat cigars, French restaurants and champagne.

Noooooo

All this time I have been spending my money on fat women, fast horses, french cigars, slow restaurants and champagne.

Buggar.

[BrollyBonce]

Is there anyone to make a breakdown for me?

Maybe my figures for 2008/09 will help.

Invoiced excluding VAT: £92,400
Corporation Tax: £14,700
Married man's tax code.
Salary equal to tax code (circa £5k or £6k or whatever it is), so no tax there.
Not using the VAT flat rate scheme (I'm better off outside it, but I'm unusual, apparently).

So, Corp Tax for me last year was 15.9% of pre-VAT invoice income.

But I do put a lot of expenses through the company.

As a rough rule of thumb, as each invoice payment clears, put all the VAT and 20% of the invoice (without VAT) into a deposit account and don't touch it. Spend the rest on fast women, slow horses, fat cigars, French restaurants and champagne.

You will now get lots of far better, more complicated advice...

[blacjac]

I'll run your company for you.


My fee is 30% of turnover.

[SuperZ]

As others said, speak to accountant.
As a guide, the 21% is due after expenses and after paye but before divi`s.

So if you earn £100, and paye salary to you is say £20 and it cost you £20 to get to the company to earn the £100, you would then pay 21% as corporation tax on the remaining £60(not the original £100). Whatever is left of the £60 after the 21% has been set aside you can take as dividends but at some point you will need to pay some NI also.

Think that`s it. I`m not an accountant however so don`t nag me if 1`m wrong

[NotAllThere]

... Is there anyone to make a breakdown for me?...

Your accountant?

[pmeswani]

[Pondlife]

[simos]

Hello all,

just want to ask more experience people in what the actual costs to run a limited company and also what is happening in terms of corporate taxes, VAT and expenses. I read somewhere that in £100, 21% are taxes for company etc. Is there anyone to make a breakdown for me?

Regards,