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Contractor Tax Guides
A selection of our most popular contractor tax guides:
Latest Tax Updates
IT contractor accountants - Directory
Directory of IT contractor accountants - links to some of the leading specialist accountant sites for IT contractors.
Contractors set to pay more tax when dissolving a company, as ESC C16 changes are enacted
Changes to the ESC C16 rules have now been enacted by the Commons, meaning that contractors closing their limited companies will have to pay more tax when making a final distribution from 1st March 2012.
(Feb 3, 2012)
Dividends - how often should I take them, and when are they actually taxed?
We explore two of the questions most often asked by limited company contractors - involving the timing, and tax point of dividend declarations.
(Feb 2, 2012)
Self assessment on limited company dividend income
A contractor recently sent in an question asking whether or not his wife needs to register to fill in a tax return, even though no tax will be payable on her dividend income.
(Feb 1, 2012)
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)
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)
Common sense self assessment tips for contractors
Some useful personal tax return tips for contractors to ensure you complete your self assessment form accurately and on time.
(Dec 8, 2011)
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)
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)
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)
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)
Tax guide for limited company contractors
When you start to contract via your own company, you will be liable for a number of business taxes, in addition to the individual taxes you will already be familiar with when you had a permanent job.
(Oct 25, 2011)
What is the Flat Rate VAT Scheme? An overview for IT contractors
An overview of the Flat Rate VAT Scheme, and how it could be advantageous for some limited company contractors.
(Oct 17, 2011)
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)
Limited company dividends - how much tax to pay?
If you are a limited company shareholder, how do you calculate the personal tax payable on dividends you receive?
(Aug 18, 2011)
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)
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)
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)
Limited company directors - salary vs. dividends
If you are a limited company director, how do your choose the right combination of salary and dividends to maximise your tax savings?
(May 19, 2011)
Corporation tax - guide for contractors
An overview of Corporation Tax and how it applies to limited company contractors.
(May 18, 2011)
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. RMAAN3AC63M4
(May 9, 2011)
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)
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)
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)
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)
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)
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)
Three big changes for limited company contractors in 2011
Limited company contractors have three big changes to contend with in the New Year that will impact on how they manage their businesses.
(Dec 22, 2010)
Limited company contractors and Corporation Tax
If you set up a limited company, you need to inform HMRC of its existence, and register to pay Corporation Tax on company profits.
(Dec 3, 2010)
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)
Limited company directors warned over illegal dividends
A leading accountant says that the number of company directors taking illegal dividends or loans has risen at a rapid rate.
(Aug 2, 2010)
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)
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)
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)
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)
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)
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)
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)
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)
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)
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)
Contractors urged to plan income strategy before April 2010 tax hikes
Higher earning contractors are being urged to consider tax planning moves in advance of new higher rates of income tax which take effect from 6th April 2010.
(Dec 4, 2009)
Contractor limited companies - paying your spouse a salary
If you run a contractor limited company and would like to pay your spouse a salary, you need to consider several factors before setting up the payroll.
(Oct 29, 2009)
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)
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)
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)
