Best Accountants in Coventry

That contract would be treated as within IR35 and the required tax and NI would be charged. This would be after all allowable expenses, personal contributions and an allowance of 5% of invoices to cover notional expenses.

No, it does not unless you happen to have a formal contract of employment with your limited company which would be unusual for owner-managed businesses. One of our accountants will contact you when you join to discuss the level of salary which is most appropriate for your circumstances.

We form your company for you, and if you require, we can assist in opening a company bank account for you. We will also commence registering you and your company with all of the relevant government bodies.

Corporation tax is payable on business profits and is not affected by the level of dividends. Higher rate personal tax is payable on dividends over the higher rate threshold.

If the broadband connection is in the name of the limited company and any personal use is purely incidental and does not incur additional costs, then there will not be any tax or national insurance consequences. If personal use is significant, and you do not reimburse your company for the personal use, then you will be taxed on the personal use as a benefit in kind and your company will have to account for Class 1a national insurance. Where you do not have a broadband connection and you can show that this is required to do your work, then HMRC accepts that this may be claimed; where, however, you already have broadband, this cannot be claimed. (s. 316 ITEPA 2003)