Tax FAQ
 

Why Do Small Business And One Directors Get Limited Company Tax Is Higher And Legislation Is Tighter?

Question by guruji | Posted in United Kingdom

for sample you need to still pay income tax and now also corporate tax too. Plus you will need to pay an accountant for your accounts. Only makes sense for a small one man business. (just so ppl dont say you need two people to indicate a company - you dont as you can get one member ones too).

Answer: One justification a sole trader may incorporate his business is to take advantage of the limited liability. A company can often be used to yield a family member into the business with the intention of passing it to them when the original owner dies. This can be simpler than transferring a point outside a company.

As far as tax goes you are right. There is little saving although it does not cost a lot more. Salaries which have borne profits tax are allowable in the company's accounts
 
 

Is There A Website That Tells Me ALL The Deductions A Limited Company Can Claim Before Tax, In Detail?

Question by juleighg | Posted in Small Business

I miss to Know AS many benefits to My limited company as Possible, EG, private healthcare deductions, ISA investments for LTD companies, Tax deductable Subsistence (other than stakeholders/Government). I am not VAT registerd.
Also what is the limit a Company can Donate to Charity, Per annum? Thanks

Answer: I don't entertain the idea you'll find this on a Web site. But you should be able to get a book from the library, or in Waterstone's, on the subject.

And all the major firms of chartered accountants have such guides.

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I Am Setting Up A Limited Company In UK. My Mum Is A Non Tax Payer.Can I Make Her A Director Pay Her Tax Free?

Question by maximillionlargo | Posted in United Kingdom

I am new to point and I'm looking for help with regards to benefits tax wise of setting up a limited company. My mum is a non tax payer. Can I sort her a director of my company pay her four and a half thousand pounds and neither of us incur any tax liability.

Answer: You can engage anyone to do what you want.

There was a well publicised case of a man splitting his income with his wife 50/50 to shun paying higher rate tax. The argument there was her role in the company didn't justify her division of her sallary.

Now that doesn't sound like what you are asking. Your mum can earn (depending on her age and circumstances) about £74 per week from you without either of you paying any tax.
May be a bit more. For profits tax it's

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How Much Tax When Limited Company Closed -in Uk ?

Question by Rupert G | Posted in United Kingdom

im based in the uk and have a limited company that i upon to close down - there is a company account.
i am the exclusive shareholder. if i shut down the company and transfer the funds to my individual account do i automatically pay the govt 40% - is there a way to pay less ?
thanks

Answer: There is an Walk-on Statutory Concession covering the dissolution of a company which enables you to treat the funds as a coming of capital. This enables you to use your CGT exemption against the gain.
I assume the company has submitted and agreed accounts with HMRC and that there is no Corporation Tax hindrance.
See your accountant.

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Tax Help For Limited Liabilty Company?

Question by Anna K | Posted in United States

Me and my Ally just opened an LLC (limited liability company) in North Dakota in October of 2007. We are neutral starting out and havent paid any state or federal taxes. Could someone please help me compute out how I am suppose to pay my personal taxes along with my business taxes.

Answer: If all you did was start an LLC, the two of you defaulted to a partnership.

The partnership report 1065 is due 4/15/2008. Part of that return will result in 2 schedule k-1 forms which will show the breakout of the takings for each of you. You use the k-1 to file your own personal 1040 which is due 4/15/2008. All federal income taxes are paid on your 1040.

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GC #9 when do i pay my taxes limited company

Should You Use an LLC for Your Real Estate Investing? Probably–and ...

by michaelkdillman

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