Personal and Corporation Tax

Guides on Corporation Tax, VAT, Self Assessments,
UTR's and claiming expenses.

Limited Company Taxes vs Self Employed Taxes

When you’re an employee, paying your taxes is fairly straightforward. You pay via PAYE, and your income tax and Class 1 NICs are deducted at source. Your employer then pays Class 1 NICs of 13.8% on salary you earn above the secondary threshold.

This changes when you become self-employed. You’re now in charge of managing your taxes, which are paid through Self Assessment. You’ll need to pay income tax on your profits, as well as Class 2 and Class 4 NICs.

You may also need to pay VAT, depending on whether your turnover exceeds the VAT threshold, or if you decide to register for VAT voluntarily. And if you’re a Construction Industry Scheme (CIS) contractor, you’ll have to pay monthly CIS deductions to HMRC.

You’re taxed differently when you operate your own limited company. You pay income tax and Class 1 NICs on wages, and dividend tax on dividends you receive. Your company pays corporation tax, as well as Class 1 employer’s NICs on your wages. And if you’re registered for VAT or the CIS scheme, you’ll have to pay these taxes accordingly.

capital gains tax in uk guide

What is Capital Gains tax & what are the rates?

What is Capital Gains tax & what are the rates?

Every business owner, or any individual who sells a capital asset should be aware that a Capital Gains Tax (CGT) may apply. Therefore, it's important that you have a basic understanding of the rules surrounding CGT-and we'll explain more about the essentials in our article below.

Capital Gains Tax (CGT) is a tax paid on profits made when you sell or dispose of an asset. As its name suggests, it's the gain you make that is taxed-and not the amount you receive for the asset.

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company car tax guide

Company car tax: The basics explained (and recent changes you need to know)

Company car tax: The basics explained (and recent changes you need to know)

The tax implications of providing a company car can be complex-and made even more confusing by HMRC's tax changes.

To help you along, we've put together an article that will guide you through the essentials.

We'll start with the basics, explaining who pays for company car tax and how it is calculated, before we run you through a quick summary of tax rates changes that were announced in July 2019.

Our article will likely answer the key questions that you have surrounding company car tax, but bear in mind that it isn't a substitute for professional advice. If you have further questions about tax and how it affects your business, do reach out our accountants at Forma for personalised advice.

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How do I find a my tax status?

How do I find a my tax status?

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How do I know how much tax to put aside?

How do I know how much tax to put aside?

When it comes to setting aside money to pay your tax bill, the general rule of thumb percentage for self-employed individuals is 25% - 30%.

This figure will vary depending on the amount of profit you report. If your profit falls between £50,000 - £100,000, it is recommended that you set aside 40% for tax. And if your profit exceed £100,000, you should be setting aside 45% for tax.

Bear in mind that these are general recommendations, and may not be an accurate estimation depending on your circumstances. HMRC's ready reckoner tool can help you work out an approximate figure you need to set away each month. We recommend consulting our Forma accountants if you need further tax advice.

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How do I pay Scottish income tax?

How do I pay Scottish income tax?

When you fill in your Self Assessment tax return online, you can check the tick box to inform HMRC that you pay Scottish income tax.

If you're employed or get a pension, your tax code will start with an ‘S'. This is an indication for your employer or pension provider to deduct tax at the Scottish rate.

See HMRC's resource for more information on Scottish income tax.

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VAT

VAT is a type of consumption tax added to the cost of most goods and services for both B2C and B2B markets. There are three rates of VAT: standard rate (20%), reduced rate (5%) and zero rate (0%). VAT is not charged on exempt or out-of-scope items.

VAT registration becomes mandatory when you meet the conditions listed below:

  • Your VAT taxable turnover exceeds the current threshold of £85,000 (for the 2021/22 tax year). The VAT taxable turnover refers to the total value of everything that you sell that isn't exempt from VAT. 
  • You expect your VAT taxable turnover to exceed £85,000 in the next 30-day period
  • Your business had a taxable turnover exceeding £85,000 over the last 12 months

But there are instances where you could benefit from VAT registration, even when it isn’t required.

It could lend credibility to your company, as being VAT-registered creates the impression that your business is larger and more established. Additionally, you may be able to reclaim VAT on goods and services you’ve purchased from other businesses.

However, these advantages must be weighed against the downsides.

Charging VAT on your goods or services could make them seem more expensive, and less appealing in a competitive business landscape. You’ll also need to handle the additional administrative burden that comes with being VAT-registered, and manage the risks of being faced with an unexpected VAT bill.

Ultimate VAT Guide

Ultimate VAT Guide

Ultimate VAT Guide

  • What is VAT
  • When to register for VAT
  • VAT rates
  • Exempt/ Out of Scope VAT items
  • VAT filing responsibilities
  • De-registering for VAT
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Standard vs Flat Rate VAT Scheme Calculator

Standard vs Flat Rate VAT Scheme Calculator

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Switch from Standard VAT to the Flat Rate VAT Calculator

Switch from Standard VAT to the Flat Rate VAT Calculator

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VAT Calculator

VAT Calculator

Working out the VAT

With our calculator, you can work out your VAT in just a few quick clicks.

If the price doesn't include VAT:

  • Select the ‚ÄòAdd VAT' option
  • Select the rate of VAT on the slider
  • You'll obtain the gross price (inclusive of VAT) and the VAT element of the bill.

If the price includes VAT:

  • Select the ‚ÄòExclude VAT' option
  • Select the rate of VAT on the slider
  • You'll obtain the pre-VAT price (exclusive of VAT) and the VAT element of the bill.

VAT basics: What you need to know

VAT, or Value Added Tax is a consumption tax that is applied to most goods and services. While the standard rate (20%) applies in most cases, there are items-such as children's car seats and sanitary products-that are charged at the reduced rate of 5%. Using the slider on our calculator, you'll be able to calculate the VAT and gross or net prices for different VAT rates. If you're unsure about the correct rate you should apply, refer to HMRC's resource on VAT rates.

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flat rate vat scheme guide

The flat rate VAT scheme explained

The flat rate VAT scheme explained

At first glance, VAT can seem like one more aspect of your business that adds to your administrative tedium. Yet, as a small business owner, you want to run your business in the most tax efficient way possible-and VAT is a common area where business owners are losing out.

Even if you've hired an accountant, you need to have a good grasp of the essentials.

Below, we'll dive into an aspect of VAT that business owners often raise questions about the flat rate VAT scheme. We'll run through the basics, touch on recent regulatory changes and share our answers to frequently asked questions about the scheme.

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What is VAT?

Most of us are familiar with, or have a basic understanding of VAT (Value Added Tax). It is a type of consumption tax added to the cost of most goods and services for both B2C and B2B markets.

VAT is charged on:

  • items sold to staff (i.e. staff canteen meals)
  • commissions
  • sale of business assets
  • business sales (ie goods or services you offer as a business)

What is the VAT threshold?

The current VAT threshold is £85,000 annual turnover.

What is the Flat Rate VAT scheme?

Under the standard rate VAT scheme, you need to sum up the VAT you've charged to your clients, and deduct the VAT you've paid on goods and services purchased.

You'll pay the difference between the VAT you charge to your clients, and the VAT you pay on your purchases. This calls for rigorous record keeping, as you need to keep track of all transactions and the rate of VAT charged. With the flat rate VAT scheme, the process is simplified.

Rather than pay out the difference between the VAT you've charged to your clients and the VAT on your purchases, you'll pay HMRC a fixed rate of VAT.

The scheme is rolled out for small businesses that don't have a large turnover, thereby saving them from the hassle of tracking VAT on purchases.

To be eligible for the scheme, businesses need to have an annual turnover of £150,000 or less (excluding VAT). The amount of VAT payable under the flat rate VAT scheme depends on the industry you operate in.

Unique Taxpayer Reference (UTR) Numbers

A unique taxpayer reference (UTR) number is a 10-digit code that’s issued by HMRC to you as an individual (personal UTR number), or to your business, partnership or organisation (company UTR number). Just like your National Insurance number, each UTR number is unique and will stay the same throughout your life.

A personal UTR number is assigned to an individual when he or she registers for Self Assessment, while a company UTR number is issued when a company is incorporated or a partnership is registered.

As a sole trader, you’ll only have your personal UTR number, while you’ll be using both UTR numbers if you’re in a partnership or running a limited company. Do note that your personal UTR number and company UTR number can’t be used interchangeably.

You’ll easily locate your UTR number, due to its length. 

You’ll find it on various documents you receive from HMRC, such as tax returns, payment reminders, notices to file tax returns, statement of account, your "welcome to Self Assessment" letter (SA250), as well as online on your Government Gateway account (it’s located at the top right corner of your account summary).

How do I file a confirmation statement with Companies House?

How do I file a confirmation statement with Companies House?

You can file your confirmation statement online. You may view Companies House's video for instructions on how to file your confirmation statement.

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What are Confirmation Statements?

What are Confirmation Statements?

A confirmation statement (CS01) is a document that limited companies and limited liability partnerships must file at Companies House annually. It details information about a company's capital position, ownership, management and activities, and helps verify that the information Companies House has about your business is up to date.

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What is a Companies House confirmation statement?

What is a Companies House confirmation statement?

A confirmation statement (CS01) is a document that limited companies and limited liability partnerships must file at Companies House annually. It details information about a company's capital position, ownership, management and activities, and helps verify that the information Companies House has about your business is up to date.

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What are UTR numbers?

Unique Taxpayer Reference (UTR) numbers are use to identify both personally and your Limited Company to HMRC.

What is a P60?

A P60 is an official form you obtain at the end of the tax year. It indicates how much you've earned over the tax year (this starts on 6th April, and ends on 5th April of the following year), as well as the amount you've paid in PAYE income tax and National Insurance contributions.

You may need a P60 for things like:

  • Applying for a mortgage
  • Claiming a Tax Refund
  • Applying for Tax Credits

Further information is available on our guide to the P60 form.

What is capital gains tax?

Capital Gains Tax (CGT) is a tax paid on profits made when you sell or dispose of an asset. As its name suggests, it's the gain you make that is taxed-and not the amount you receive for the asset. 

To find out what assets or values capital gains tax is applied on then check out our guide below:

Corporation Tax

Corporation tax is a tax levied on limited companies in the UK. Just as income tax is levied on an individual’s earnings, corporation tax is calculated based on a company’s trading profits.

At present, the corporation tax rate is 19% (2021/22 tax year). Starting 1 April 2023, the corporation tax rate will be increased to 25% for businesses with profits ranging between £50,000 and £250,000. Businesses with profits amounting to £50,000 or less will continue to pay at the current rate of 19% after April 2023.

Payment is due 9 months and 1 day after the end of your accounting period. For instance, if your accounting period ends on 31 December 2020, your corporation tax bill must be paid up by 1 October 2021.

You need to pay extra attention to your deadlines if you’re in your first trading year. That’s because you’ll have two corporation tax accounting periods—and therefore two payment deadlines.

Your first accounts will typically extend beyond 12 months, as the accounting reference date (this is decided on by Companies House) will fall on the last date of the month that your company was incorporated. For instance, if your company was incorporated on 10 June 2021, the accounting reference date will fall on 30 June 2022.

As such, your first accounts will cover 12 months and 3 weeks. Your accounting periods and corporation tax deadlines are as follows:

  • 10 June 2021 — 9 June 2022. Payment will be due 9 months and 1 day after 9 June 2022.
  • 10 June 2022 — 30 June 2022. Payment will be due 9 months and 1 day after 30 June 2022. 

Reducing your corporation tax bill isn’t complicated, but it does require you to be religious about keeping track of your expenses and tax deadlines. You’ll need to claim your business expenses wherever possible, take advantage of early tax payment incentives, as well as tax allowances and reliefs.

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Corporation Tax Calculator

Corporation Tax Calculator

Corporation tax basics: What you need to know

Corporation Tax refers to tax you pay on money your company or association makes from trading profits, investments and chargeable gains.

It is calculated and paid on an annual basis, based on your ‘accounting period' for corporation tax. This is typically the same as your company's financial year. Limited companies, foreign companies with a UK branch or office, clubs, co-operatives and unincorporated associations are required to pay corporation tax on profits.

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When is corporation tax due?

Keep in mind that unlike most taxes, the deadline for paying your corporation tax bill is earlier than the deadline for your tax return.

Your corporation tax bill is nine months and one day following the end of your accounting period. If the end of your accounting period falls on 31 March 2019, you'll need to make your payment by 1 January 2020. The payment is made once a year if your profits fall below £1.5 million. Payment is made in instalments for businesses with profits exceeding £1.5 million.


What is the current corporation tax rate?

The current rate is 19% for the 2019/20 tax year. For the tax year starting 1 April 2020, the rate will be reduced to 18%.

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Corporation Tax Provision Calculator

Corporation Tax Provision Calculator

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tax bill guide

How to reduce your Corporation Tax bill

How to reduce your Corporation Tax bill

As a small business owner, staying on top of your finances can seem overwhelming, particularly when you're just starting out.

One of the key areas you need to keep an eye on is your taxes, and that's tricky subject to navigate. You want to reduce your tax bill wherever possible-and be in the good books of HMRC while doing so.

Below, we'll share a few simple tactics you can implement to reduce your Corporation Tax. Keep in mind that these are tactics that apply to businesses in general, and depending on your situation or industry, there could be other tax reliefs that may apply.

And as your business grows, there may be allowances or deductions that you now qualify for, but missed out on applying for previously. As such, we highly recommend checking in with our accountants at Forma to clarify any tax issues you're unsure about.

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How do I pay Corporation Tax?

How do I pay Corporation Tax?

There are various ways you can make your corporation tax payment:

  • Same day or next day payments: CHAPS, online or telephone banking (Faster Payments)
  • Three working days: BACS bank transfers, Direct Debit, debit or credit card payment online, payment at a bank or building society
  • Five working days: Direct Debit (if you haven't set up a Direct Debit previously)
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How do I reduce corporation tax?

How do I reduce corporation tax?

You can reduce your corporation tax bill by:

  • Claiming your business expenses
  • Paying yourself a salary
  • Taking advantage of HMRC's incentives for early tax payment
  • Taking advantage of tax allowances and reliefs
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What is a corporation tax?

Corporation tax is a tax paid by all UK limited companies. This is a tax based on your company profits, so if you don't turnover a profit then you have no tax to pay.

How much is Corporation Tax?

Corporation Tax in the UK is currently set at 20% of your company profits.

When do I pay corporation tax?

Your company tax is due 9 months and 1 day after your Company Year End.

Self Assessment Tax

How you pay your taxes changes when you become self-employed.

Instead of having your income tax and Class 1 NICs deducted at source through PAYE, you’re now required to file a Self Assessment tax return. You pay income tax on your profits (not total income), as well as Class 2 and Class 4 NICs.

Registering for Self Assessment as a sole trader is fairly simple, and can be completed online. HMRC will then send out a letter with your 10-digit Unique Taxpayer Reference (UTR), as well as set up your account for the Self Assessment online service. The registration process differs slightly if you're setting up as a limited company or limited liability partnership. You'll need to access a different registration page.

You will need to register by 5th October after the end of the relevant tax year. Here's an example: for the tax year starting 6th April 2021 to 5th April 2022, the registration deadline will fall on 5th October 2022.

You’ll need to stay on top of your Self Assessment filing and paymentdeadlines. You must complete your online filing by 31st January, while payments for your tax bill are due on 31st January after the end of the relevant tax year. For example, your tax bill for the 2021/22 financial year must be paid up by 31st January 2023.

payment on account guide

What are Self Assessment payments on account?

What are Self Assessment payments on account?

Paying your taxes can seem complicated, particularly if you're newly self-employed. There are numerous elements you need to understand and stay on top of, and one of these is the payment on account.

To help you get a grasp on the essentials, we've written up a quick guide below. It'll cover what a payment on account is, how it works, late payment penalties and other key information you need to know.

Payments on account are advance payments for your tax bill that are spread out across the year. You'll need to make two payments each year, and these are due on 31st January and 31st July.

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pay for self assessment tax guide

How to pay your Self Assessment Tax

How to pay your Self Assessment Tax

You may already be familiar with the process of paying your Self Assessment tax bill.

Yet, it's always helpful to have a guide on hand-one that you can look over just before you make your payment, so you can be sure that you haven't missed out on important details that can put you at risk of incurring a penalty.

  • Submission of Self Assessment tax return: You need to submit your online tax returns by 31st January. Paper returns are due earlier; these must be filed by 31st October.
  • Payment: Any personal tax due for the previous tax year (6th April-5th April) must be paid up by 31st January. This means that your 2019/20 tax year must be paid up by 31st January 2021.
  • Payments on Account: "Payments on account" are advance payments for your tax bill that are spread out across the year. You'll need to make two payments each year, and these are due on 31st July and 31st January.

Tip: If the payment deadline falls on a public holiday, make sure that your payment is submitted by the final working day.

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self assessment for self employed guide

Self Assessment tax returns for the self employed

Self Assessment tax returns for the self employed

If you're self-employed-either as a business owner or freelancer-you will need to complete a Self Assessment tax return.

It's one of the most important tax documents you will need to handle, and there are numerous details you'll have to keep in mind, including deadlines and late penalties.

Our guide offers a quick overview of the essentials-so it's just the article you need if you're getting started.

A Self Assessment (or Self Assessment tax return) is a form that business owners are required to submit to HMRC every year. It details how much you've earned and your sources of income, which enables HMRC to work out the Income Tax and National Insurance you need to pay.

This applies to self-employed workers, who-unlike employees-don't have their income tax automatically deducted from their salaries.

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How do I pay my self assessment?

How do I pay my self assessment?

There are various ways to pay your Self Assessment Tax bill.

Same or next day

You need a paying-in slip from HMRC to pay at a bank or building society.

3 working days

5 working days

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What are Payments on account?

What are Payments on account?

Payments on account are advance payments for your tax bill that are spread out across the year. You'll need to make two payments each year, and these are due on 31st January and 31st July.

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What is a self assessment tax return?

A Self Assessment (or Self Assessment tax return) is a form that business owners are required to submit to HMRC every year. It details how much you've earned and your sources of income, which enables HMRC to work out the Income Tax and National Insurance you need to pay. 

This applies to self-employed workers, who - unlike employees - don't have their income tax automatically deducted from their salaries.

Who needs to file a Self Assessment Tax Return?

Most people do not need to file a Self Assessment because they are taxed at source. But there are a few reasons you may need to complete a tax return:

  • You’re self-employed and earned more than £1,000
  • You are a landlord with rental income over £2,500
  • You made over £12,000 in profit from investments
  • You received more than £10,000 from savings interest or dividends
  • You have foreign income
  • You want to claim a tax refund (CIS, EIS, SEIS, donations)
  • HMRC tells you to submit one
  • Your income is over £100,000
  • You live abroad and had income from the UK
  • You’re in a partnership
  • You are a minister of any religion

What is the deadline to file?

You need to file and pay your self assessment by 31st January 2021. This is for income you received from April 6th 2019 until April 5th 2020.

To learn more about tax return payments, deadlines and penalties - check out our guide below:

How do I pay my self assessment tax return?

The easiest way to pay for your self assessment tax return is via bank transfer - check out our guide below for all the ways you can pay.

P11D - Benefits in Kind

The P11D is a statutory form that records benefits in kind. These are employment benefits that employees and directors of a company have received across the year, such as company cars, private health insurance or loans.

All employers are required to file the P11D. If you’re working for yourself, such as through freelancing or contracting, you’ll also need to file the P11D. But if you’re contracting through an umbrella company, you’re not in-charge of filing the form; instead, you’ll receive the P11D from your provider.

P11D filings are due on 6th July following the relevant tax year. That means that your P11D for the tax year ending April 2021 must be filed by 6th July 2021, and any tax due must be paid by 22nd July.

When you’re filling up the P11D form, you need to report the following: company vehicles, health insurance, non-business travel and entertainment expenses, loans and company assets provided or transferred to employees or directors that have significant personal use. 

You don’t need to include expenses such as: business travel and entertainment expenses, professional fees and subscriptions, uniform and tools for work and phone bills. 

If you’ve submitted the P11D forms, paid your employees’ expenses or benefits through payroll or received a notification from HMRC, you’ll also need to submit the P11D(b) form. The form is a summary of the benefits you’ve provided for your employees, and also indicates the Class 1A National Insurance due on these benefits.

How do I submit a P11D form?

How do I submit a P11D form?

You can submit the P11D form via HMRC's PAYE online service, HMRC's Online End of Year Expenses and Benefits service or through a commercial payroll software. If you're unable to use the online methods above, you can also download the forms P11D and P11D(b) and send it to the P11D Support Team via post.

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p11d form guide

What is a P11D form?

What is a P11D form?

The P11D is a tax form that records employment benefits that the employees and directors of a company have received across the year. The information provided enables HMRC to figure out if you're required to pay tax on these benefits.

Each P11D form includes your basic identifying information, along with various sections that cover a range of benefits and expenses-from accommodation, to vouchers, credit cards and mileage allowance.

There's also the P11D(b) form. This form sums up the total amount of taxable benefits that an employer has provided for its employees, and indicates the amount of Class 1A National Insurance due on the expenses and benefits provided. You'll need to submit a P11D(b) form if:

  • you've submitted P11D forms
  • you've paid your employees' expenses or benefits through your payroll
  • you've received a reminder from HMRC

Tip: Don't get the P11D mixed up with the P9D form. The latter is submitted when your employees' annual earnings fall below £8,500.

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What is a P11D - Benefits in kind?

What is a P11D - Benefits in kind?

The P11D is a tax form that records benefits in kind that employees and directors of a company have received across the year. The information provided enables HMRC to figure out if you're required to pay tax on these benefits.

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What is a P11D?

What is a P11D?

The P11D is a tax form that records benefits in kind that employees and directors of a company have received across the year. The information provided enables HMRC to figure out if you're required to pay tax on these benefits.

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Dividends

A dividend is a payment of profit that a limited company distributes to its shareholders. This is the money remaining after all business expenses and liabilities, as well as outstanding taxes (including VAT and Corporation Tax) have been paid off.

Limited company directors typically draw a low salary, with most of their income being paid through dividends. By taking most of your income in the form of dividends, you can significantly reduce your income tax bill. That’s because dividends attract lower rates of income tax than salary, and no NICs are payable on dividends.

Dividends attract a much lower rate of income tax than salary does. There is also a slightly greater tax-free allowance when you are paid in dividends. Here’s a table for comparison:

Dividend tax rate table 2020/2021
Dividend Tax Rates for 2020/2021


Dividends Guide

Dividends Guide

Dividends Guide

  • What are dividends?
  • Dividend tax rates and allowances
  • Paying taxes on dividends
  • Dividend FAQs
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Dividend Calculator (Excluding VAT)

Dividend Calculator (Excluding VAT)

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Dividend Calculator with VAT Flat Rate Scheme

Dividend Calculator with VAT Flat Rate Scheme

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Dividend Tax Calculator 20/21

Dividend Tax Calculator 20/21

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dividends taxes guide

What are the taxes, rates and allowances on dividends?

What are the taxes, rates and allowances on dividends?

A dividend is money that's paid out by limited liability companies to investors, usually on a quarterly or annual basis. These payouts are based on the quarterly profits of your company as well as the amount of stock you own.

Dividends are calculated based on profits-what is left in your company after all expenses have been paid-not revenue.

Dividends can be either paid in cash or reinvested into your investment portfolio via dividend reinvestment, or via SCRIP dividends-which allow companies listed on the LSE to give investors additional shares instead of cash payouts.

Dividend tax refers to the rates by which those dividends are taxed according to HMRC. Each year, these tax rates may differ.

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Dividend Taxes

Whether you're a contractor or a Limited Company director, dividends will be a key way that pay yourself.

Dividends are often the preffered mechanism from which directors of micro limited companies will pay themselves but understanding the tax implications and tax rates will ensure you don't run into a surprise tax bill for your self assessment.

What are dividends?

A dividend is a payment of profit that a limited company distributes to its shareholders. This is the money remaining after all business expenses and liabilities, as well as outstanding taxes (including VAT and Corporation Tax) have been paid off. 

Dividends must be distributed according to the percentage of ownership of each shareholder. Here's an example: if you own 50% of your company's shares, you will receive dividends amounting to 50% of the retained profit.

What are the dividend tax rates?

The current dividend tax rate is calculated via a combination of your income tax band and a dividend allowance. 

The dividend allowance is a tax break that individuals receive on the first £2,000 in dividends i.e. the first £2,000 in dividends is tax free.

To calculate how much to pay in dividends, you have to understand income tax bands.You will have to include dividends into your income to determine your tax band.

Let's take a quick look at how £175 000 in dividend payments would be taxed in 2020.

This example assumes that your dividends are your only source of income.

  • You will pay nothing for the first £2,000 due to the tax allowance.
  • You will pay 7.5% (basic rate) for £2,000 - £37,500.
  • You will pay 32.5% (high rate) for £37,500 - £150,000.
  • You will pay 38.1% (additional rate) for +£150,000.

To read more about dividend tax rates and allowances, check out our guide below:

Claiming Expenses

Depending on whether you have a Limited Company or your operate as a sole trader, read more on claiming expense for your company below:

Christmas Company Expenses Guide

Christmas Company Expenses Guide

Christmas Company Expenses Guide

  • Christmas expenses overview
  • Staff party claims
  • Gift voucher claims
  • Gift claims
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Limited Company Expenses Guide

Limited Company Expenses Guide

Limited Company Expenses Guide

  • Allowable business expenses
  • Employee expenses
  • Travel expenses
  • Office & equipment expenses
  • Professional services expenses
  • General expenses
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Use of Home Allowance

Use of Home Allowance

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advisory fuel rates guide

Self employed advisory fuel rates guide

Self employed advisory fuel rates guide

Advisory fuel rates are recommended repayment amounts a company can use when reclaiming the fuel element on business mileage.

The rates are used to calculate:

  • How much employers should reimburse employees for business travel using the company car
  • How much employees need to repay employers for private travel using the company car
  • The VAT you can claim back on business mileage using your personal vehicle
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claim for business mileage guide

How to claim for business mileage

How to claim for business mileage

Being self-employed often means having to juggle multiple roles and tasks.

Amidst all your different responsibilities, keeping track of your business mileage can appear tedious-and it can easily become a task that you postpone time and time again. Yet, these little trips can add up, and as a small business owner, it's important that you make the most of what you can claim.

If you're newly self-employed, or just want to get a grasp on the basics of claiming your business mileage, this article is for you.

It explains the essentials, including how you can calculate your costs, the records you need to keep, and other important information that you need to be aware of.

Both business owners and employees can claim business mileage.

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What expenses can I claim when Self Employed?

You can claim a range of expenses when Self Employed and you'll need to report this in your annual Self Assessment Tax Return.

Examples expenses you can claim include:

  • Office rental or coworking costs
  • Business and water rates
  • Utility bills
  • Property insurance
  • Use of home office
  • Claim a portion of your bills if you've set up a home office
  • Office equipment
  • Marketing costs
  • Professional subscriptions
  • Business travel
  • Business mileage
  • Professional fees
  • + loads more

Check out our complete guide below which will walk you through all the expenses you should be claiming!

What expenses can I claim through a Limited Company?

You should definitely check out all the allowable expenses for your Limited Company as this not only reduces your corporation tax but also reduces your personal tax if you are purchasing any of these items personally.

The key categories include:

  • Employee expenses
  • Business travel
  • Office + office equipment
  • Professional service fees
  • General expenses (donations, eye tests)

What Director expenses can I claim?

As a Limited Company director you should make sure that you know what directors expenses you can claim.

The key categories include:

  • Business travel
  • Office + office equipment
  • Professional service fees + training

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