• Tax update from Peter - Autumn 2011

    1. Lower corporate tax rates are staying; and the 20% corporation tax rate is an attractive alternative to being taxed as a sole trader.

    2. From 5 April 2011, private car business usage claims are now at the rate of 45 pence per business mile. If you do say 3,000 miles on business trips annually, you are owed £1,350 by your company. If your employer does not reimburse you, you can make a similar claim to HMRC.

    3. Company cars remain expensive because of the taxes imposed for personal use. Avoid buying a car through your company unless ...

  • Do owner managed companies need to register at HMRC for payroll?

    If you are the owner of a small business and you trade through a limited company, it is likely that you are set up with a salary for 2011/12 of around £7,020 per annum (2010/11: £5,700). The remainder of your drawings from the company will then be by way of dividend.

    This is good tax planning and ensures that you pay as little tax as possible when corporation tax and personal tax liabilities are combined.

    Salaries are set at this level for a good reason: It is the maximum salary that can be drawn such that ...

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