What is a dividend?
A dividend is a distribution of the after tax profits of a limited company to its shareholder(s). This is not considered by HMRC as remuneration (earned income) and therefore is not subject to NIC.
What if I have a second job that is PAYE?
This is absolutely not a problem. When completing your self-assessment tax return, your accountant will take account of any other income you have received and the tax that you have paid on it.
Does Choice retain my tax?
No. You will need to set aside funds to pay your taxes when they become due. Your accountant will advise each week how much you should set aside for all taxes (typically 20%). You must then transfer that to a tax savings account so the money is available when it is due to be paid.
When are my taxes due?
VAT is due once a quarter. Personal tax is often due twice a year and Corporation Tax is due annually. Your accountant will advise when in the year these payments are due for you and your limited company.
Can you recommend an accountant?
Balance is an ICAEW member firm of accountants. We recommend their accountancy service and if you choose to engage them they will be available to speak to you as and when required and will provide you with all the accounting support you need. You will also be called frequently for the first couple of months to ensure you understand how to get the most out of the service.
What expenses can I claim?
Your accountants will provide you an extensive list of what you are allowed to claim.