Accounting for use of home really does point out the differences between running a business as a director / shareholder of a limited company and running a business as a sole trader. Running your business as a sole trader allows you to claim tax relief for costs, charged to you as an individual, that you can […]
Category: Director
How much salary/dividend? Director and Shareholder in a Limited Company.
It is generally accepted that it is more tax efficient for a director/shareholder to extract profits from a company as a dividend rather than a salary. To optimise your earnings my calculations suggest a 3:1 dividend/salary mix. Tax rates pretty much keep in alignment throughout the tax system be it sole trader, employee, corporation or dividend taxation. There are differences but it is swings […]
Small Company Director/Shareholders – Company Cars and Vans
Personal taxation on company cars has been increasing for years particularly on private fuel benefit. Whether there is a financial benefit from having a car and fuel financed through the company really needs to be looked at carefully on an individual basis. My reckoning says unless you want an expensive zero emission vehicle and will […]