New tax rules, small limited companies


D

D.M. Procida

Is there really much point any more in being a small limited company now
that the Chancellor has pretty much removed the tax benefits of paying
oneself a dividend rather than a salary?

And, does anyone know of a website that will help me work out how the
new rules apply to me, so I can decide what to do?

Thanks,

Daniele
 
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M

Martin

message
Is there really much point any more in being a small limited company now
that the Chancellor has pretty much removed the tax benefits of paying
oneself a dividend rather than a salary?
If you mean "as opposed to sole trader", then very much so. Although all
Ltd Coys (big and small) will pay more CT if profits are <£50k, AND divs are
paid to individuals, the max extra tax is only £1,900. Most probably it'll
be much less than that.

If you mean "as opposed to shutting up shop and living in Provence", that's
another issue!
And, does anyone know of a website that will help me work out how the
new rules apply to me, so I can decide what to do?
The IR site is as good as any. Go to home page and put NCD tax into search.
The explanations include worked examples. Any probs, just come back here.
 
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J

Jonathan Bryce

D.M. Procida said:
Is there really much point any more in being a small limited company now
that the Chancellor has pretty much removed the tax benefits of paying
oneself a dividend rather than a salary?
Yes. The benefits have not been removed, only reduced.
And, does anyone know of a website that will help me work out how the
new rules apply to me, so I can decide what to do?
http://www.inlandrevenue.gov.uk/
 

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