Contractor Tax & Accounting - Page 2
If I want to close down my limited company, can I extract any remaining profits tax efficiently?
If you are considering closing down the company you have used for contracting, we look at how any remaining profits can be extracted in a tax efficient way.
(Jan 27, 2012 in Tax )
Limited company shareholders - changes to ESC C16 rules from March 2012
HMRC has announced that changes are to be made to the tax treatment of shareholder distributions when a limited company is wound up.
(Dec 19, 2011 in Tax )
How much should limited company contractors set aside for income tax?
If you are a limited company director, how much money should you put aside to settle your personal tax bill each year?
(Dec 12, 2011 in Tax )
Can you reclaim the cost of home broadband from your limited company?
In the latest of our series on limited company expenses, we look at tax treatment of broadband installed at home.
(Dec 6, 2011 in Tax )
Christmas party expenses guidelines for contractors
Although most contractors work as one or two-man limited companies, with no other employees, you are allowed to claim back the costs of an annual party for your staff, as long as you follow the HMRC guidelines carefully.
(Dec 5, 2011 in Tax )
Can I buy health insurance or gym membership via my limited company
What are the tax implications of paying for health insurance or gym membership via your limited company?
(Nov 28, 2011 in Tax )
What salary should I pay myself as a limited company contractor?
One of the most commonly asked questions asked by limited company contractors is what salary should you pay yourself?
(Nov 25, 2011 in Tax )
Key accounting dates for limited company contractors
Some of the key accounting dates for limited company contractors, including PAYE/NIC and self assessment deadlines.
(Nov 16, 2011 in Tax )
What is the Flat Rate VAT Scheme?
An overview of the Flat Rate VAT Scheme, and how it could be advantageous for some limited companies.
(Oct 17, 2011 in Tax )
New HMRC self assessment tax return penalties revealed
HMRC has introduced a new range of penalties for late tax return submissions and payments.
(Sep 13, 2011 in Tax )
BN66 - an overview of the offshore tax avoidance rules
In March 2008, the Chancellor announced a crackdown on the 'abuse' of loopholes in the double taxation treaties which exist between the UK and other countries. An overview of BN66 in light of the recent Huitson/Montpelier High Court case.
(Jul 25, 2011 in Tax )
What National Insurance Contributions do contractors have to pay?
Employers and employees must both pay National Insurance Contributions on income paid above the primary threshold. What rates are contractors liable for?
(Jun 12, 2011 in Tax )
VAT schemes for limited company contractors
An overview of the main VAT schemes available to limited company contractors, including the standard, cash accounting and flat rate VAT schemes.
(Jun 2, 2011 in Tax )
Putting expenses through your limited company
If you are a limited company contractor, you will incur a range of expenses while running your business. Here we look at what you can claim via your company, whether you're inside or outside IR35.
(May 9, 2011 in Tax )
How are limited company dividends taxed?
Limited company contractors, who fall outside IR35, draw income in the form of salary and dividends. How do you work out your tax liability on the dividends you declare?
(May 6, 2011 in Tax )
Tax rates and allowances - 2011/12
Key tax rates and allowances for the 2011/12 financial year - Income Tax, NICs, Corporation Tax, Dividend Tax, IHT, ISAs, VAT, CGT, AMAPs.
(Mar 24, 2011 in Tax )
Budget 2011 predictions - how will contractors fare?
Around this time of year, accountants tend to get excited about the measures the Chancellor is likely to deliver on Budget day. We examine the changes we already know about, and others that are likely to be announced on the 23rd March.
(Mar 22, 2011 in Tax )
Late filing contractors face harsh penalties from April 6th
New financial penalties are to be imposed on individuals who file their personal tax returns late after April 6th 2011. One contractor accountant has criticised the move by HMRC, preferring to see a more educational approach.
(Mar 21, 2011 in Tax )
Lower corporation tax rate for limited company contractors from April 2011
HMRC has announced some changes to the way Corporation Tax returns and payments are made from April 2011. The small companies tax rate is also due to fall which will be welcome news to limited company contractors.
(Feb 9, 2011 in Tax )
Guide to the most commonly used HMRC forms for limited company contractors
If you are a limited company contractor, you will need to be familiar with a number of HMRC forms, which cover VAT, Corporation Tax and your company payroll. Here, we look at what the most common forms are used for.
(Jan 25, 2011 in Tax )
VAT rate changes from 4th January 2011 - how contractors are affected
The standard rate of VAT rises from 17.5% to 20% on 4th January 2011, and the Flat Rate VAT percentage applicable to most IT contractors also rises from 13% to 14.5%.
(Jan 3, 2011 in Tax )
Do I need to register my ltd company for VAT?
At what stage do limited company contractors have to register for VAT?
(Nov 30, 2010 in Tax )
How to register for VAT, and invoicing prior to receiving your registration number
When you set up as a limited company contractor, one of the first tasks you carry out will typically be to apply for the company to become VAT registered. How does the process work?
(Nov 17, 2010 in Tax )
Do I need to inform HMRC if I pay my wife a small salary via my company?
A reader asks if he needs to inform the authorities if he wants to pay his wife a small salary for 'administrative' work done for his company.
(Sep 14, 2010 in Tax )
I haven't received a VAT registration number yet. Can I still include VAT on my invoices?
How contractors should account for VAT on their invoices before a VAT registration number has been issued.
(Sep 10, 2010 in Tax )
Limited company directors warned over illegal dividends
A leading accountant claims that there has been a significant rise in the number of limited company directors who have distributed dividends illegally in recent months.
(Aug 2, 2010 in Tax )
IT contractors and Capital Gains Tax (CGT)
Following the Emergency Budget, many contractors will be aware that the higher CGT rate has risen to 28%, effective from 23rd June 2010.
(Jul 13, 2010 in Tax )
What is entrepreneurs' relief?
If you sell all or part of your business, or its assets after trading as ceased, you may be able to claim entrepreneurs' relief on the proceeds and pay 10% instead of the standard CGT rate.
(Jul 9, 2010 in Tax )
What can contractors expect from the 'emergency budget'?
The most eagerly anticipated Budget in decades is likely to contain significant changes to most areas of business and personal taxation. What can contractors expect on June 22nd?
(Jun 1, 2010 in Tax )
Coalition government - the tax consequences for contractors
What are the likely tax consequences for contractors and small businesses following the creation of a Conservative / Liberal Democrat coalition government?
(May 12, 2010 in Tax )
What is BN66 and how does it affect contractors?
How does BN66 prevent double taxation treaty abuse, and how does it affect contractors who have used offshore tax avoidance schemes in the past?
(Apr 12, 2010 in Tax )
P35 'service company' question for limited company contractors
The 'service company' question on the 2009/10 P35 employer annual return could cause limited company contractors some confusion once again this year.
(Apr 4, 2010 in Tax )
Changes for VAT registered contractors from 1st April 2010
Any contractors registered for VAT should be aware of a number of changes to the VAT system, which take effect from 1st April 2010.
(Mar 30, 2010 in Tax )
Income tax rates and taxable bands - 2010/11 tax year
The income tax rates and bands for the 2010-11 tax year, including the new 50% rate, the gradual personal allowance removal if you earn over six figures, and the new 42.5% dividend tax band.
(Mar 25, 2010 in Tax )
Contractor tax records - how long should you keep them for?
HMRC has released a new guide explaining which tax and accounting records contractors should keep, and how long they should keep them for.
(Feb 23, 2010 in Tax )
Contractors urged to file tax returns online by Sunday 31st January
HMRC has reminded taxpayers that they need to complete their annual self assessment tax returns online by 31st of January, to avoid paying a penalty.
(Jan 12, 2010 in Tax )
VAT changes for limited company contractors in 2010
Alongside the return to the old rates of VAT from 1st January, most contractors will also have to get used to filing their returns online from 1st April 2010.
(Jan 4, 2010 in Tax )
HMRC forms used by limited company contractors
A summary of the most commonly used HMRC forms used by limited company contractors and their accountants.
(Oct 26, 2009 in Tax )
Tax deadline reminder for contractors
If you want to keep tabs on all your personal and business tax deadlines, you might like to download a handy PDF summary.
(Oct 20, 2009 in Tax )
How much money can I distribute in dividends?
If you are a limited company contractor, how do you extract dividend income from your company?
(Aug 10, 2009 in Tax )
When are my limited company annual accounts due?
If you have set up a new limited company for your contracting business, when do you have to submit your company accounts to Companies House?
(Aug 5, 2009 in Tax )
Limited or umbrella company - income comparison
A useful tool to calculate your post-tax income, depending on your choice of business structure - limited company, umbrella company, or PAYE via a recruitment agency.
(Jul 15, 2009 in Tax )
Tax / Statutory deadlines for limited company contractors
Limited company contractors should be aware of some key tax and statutory filing deadlines.
(Jun 1, 2009 in Tax )
File your P35 online this year and receive a tax-free cash sum from HMRC
If you are a limited company contractor, you can claim a modest tax-free sum by filing your employer annual return (P35) online this year - even if your accountant files on your behalf.
(Apr 16, 2009 in Tax )
Income Tax, National Insurance (NIC), Dividend Tax rates - 2009/10
The latest income tax rates, taxable bands, dividend tax, and National Insurance (NIC) rates for the 2009/10 tax year.
(Apr 5, 2009 in Tax )
Corporation tax for contractor companies - 2009/10
Corporation tax rates for the 2009/10 tax year remain unchanged from 2008/9. IT contractor companies will continue to pay 21% on their profits.
(Apr 5, 2009 in Tax )
New HMRC penalties regime from April 2009
Contractors should be aware of the tough new HMRC penalty regime which comes into play from 1st April and applies to errors made on tax returns and related documents.
(Mar 27, 2009 in Tax )
VAT staff hire concession abolition could hit agencies
Many recruitment agencies will be dreading the withdrawal of the VAT Staff Hire Concession from 1st April 2009, as the costs to non-VAT registered clients of hiring temporary workers will increase significantly.
(Mar 25, 2009 in Tax )
IT contractors and company car taxation
There are some important tax considerations to bear in mind when deciding whether to buy a company car, or claim a mileage allowance for business use of your own car.
(Mar 13, 2009 in Tax )
VAT accounting methods for limited company contractors
The different ways contractor companies can account for VAT - the 'standard' VAT accounting, flat rate VAT, annual accounting, and the cash accounting schemes.
(Mar 10, 2009 in Tax )
IT contractor expenses - what can you claim for?
IT contractors are allowed to claim back expenses they have incurred during their business duties. This article looks at some of the most common expenses you might incur as a contractor.
(Feb 11, 2009 in Tax )
2008 Pre-Budget Report - the main points
In a massively political Pre-Budget Report, the Chancellor delivered his expected cut in VAT, introduced a headline grabbing income tax hike for big earners and deferred another 1p hike in the small companies' corporation tax rate. Income shifting legislation has been delayed once more and there will be no action on the travel expenses tax relief issue.
(Nov 24, 2008 in Tax )
Are your VAT invoice numbers unique and sequential?
Some contractors might be unaware of new rules which came into play in October 2007 which mean that VAT registered businesses must use unique and sequential numbers for their invoices.
(Oct 30, 2008 in Tax )
Claiming tax relief if you work from home
Small business owners are being urged to claim all the tax relief they are entitled to from HMRC.
(Oct 30, 2008 in Tax )
IT contractors - when should you register for VAT?
IT contractors must register for VAT if their annual turnover reaches the current VAT registration threshold. This article looks at the benefits of becoming VAT registered.
(Sep 3, 2008 in Tax )
HMRC announces income tax changes for 2008/9 tax year
The personal allowance and higher rate tax bands for the 2008/9 tax year have been changed in an attempt to make up for the abolition of the initial tax band following Budget 2008.
(Aug 5, 2008 in Tax )
Tax simplification would do away with the need for IR35, MSC's and Income Shifting
The CIOT calls for NIC's and income tax to be aligned, to simplify the small business tax system, and do away with the need for IR35, managed service companies, and much "income shifting".
(Jul 21, 2008 in Tax )
Tax pitfalls for owner managed companies in 2008
An interesting article has been published which looks at the mounting tax pitfalls which exist for owner managed companies.
(May 9, 2008 in Tax )
Joy for contractors as Self Assessment form-filling to become less of an ordeal
Good news for any IT Contractors who fill in their own Self Assessment forms each year - the process is set to become a lot easier following a revamp of the current form.
(Apr 14, 2008 in Tax )
Budget 2008 - How IT Contractors are affected
How Budget 2008 will affect IT Contractors - Income Shifting delay, Rogue Umbrella Company announcement, CGT taper relief abolition, and changes to Income Tax and National Insurance rates.
(Mar 14, 2008 in Tax )
Government releases draft "entrepreneurs' relief" legislation
Draft legislation for the Government's capital gains tax "entrepreneurs' relief" concession has been published.
(Feb 28, 2008 in Tax )
Chancellor delivers Capital Gains Tax u-turn
The Chancellor has published his latest changes to the CGT regime. Now, individuals will pay 10% CGT on business asset sales up to GBP1m over a lifetime. The 18% rate will kick-in on all sales above this threshold.
(Jan 24, 2008 in Tax )
CGT Taper Relief abolition creates UK business backlash
The proposed abolition of the CGT taper relief regime has created a massive backlash from UK businesses who will face a 80% tax hike when they sell their companies.
(Nov 6, 2007 in Tax )
IT contractor expenses - most contractors are confused!
The results of a major online poll shows than most IT contractors are still confused about expense claims.
(Oct 29, 2007 in Tax )
Compensation for VAT registration delays?
The ICAEW has called for action to be taken over the severe delays in the VAT Registration system - many contractors are thought to have been caught up in the delays.
(Aug 12, 2007 in Tax )
VAT calculator for IT contractors
Handy calculator to help you work out how much VAT to charge clients based on your net billing amounts.
(May 6, 2006 in Tax )
