Steer issue 20 March - Page 11



BUSINESS ADVICE
company tax return and related computations to
HMRC every year and each director has to submit a
self-assessment tax return. You are responsible for this
as a company director
• Accountancy fees are generally more expensive as
there is more work required
How does the tax work?
As a sole trader you will be taxed on all of the profits
made by your business, regardless of whether you actually
withdrawn these. The current tax rates are 20%, 40% or
45%. In addition to tax you will pay Class 4 National Insurance Contributions (NIC’s) on your profits at 9% or 2%, as
well as Class 2 NIC’s at the annual flat rate.
cut this further to 17% from the April 2020 tax year.
Company directors are taxed personally on the income
they draw down from the company and there are tax efficient ways to do this.
It is far from an easy decision but hopefully this article
has helped to clear a few things up. It is certainly worth
speaking to your accountant before deciding as every
business is different.
A limited company pays Corporation tax at 19% on all annual profits – the Government has stated its intention for
i
Claire
Hughes
Claire Hughes from CH-Accountancy,
can be contacted on, email
claire@ch-accountancy.co.uk
Talk to us about:
Business Protection
Don’t neglect your responsibilities





Key Person Protection?
Business Loan Protection?
Directors Loan Protection?
Share Protection?
Business Continuation Plan?
Avoid business interruption and uncertainty when
the unexpected happens to a key employee.
Avoid having to sell part of the business, or all
of it.
Ensure continuation of employment for your staff.
Ensure quality of life for you and your family.
TALK TO US TODAY, WE CAN HELP
01233 800 555 | info@scarlettfs.com
scarlettfs.com
Scarlett Financial Services LTD is an appointed representative of Personal
Touch Financial Services Limited which is authorised and regulated by the
Financial Conduct Authority. Registered in England and Wales. No 10142347
STEER YOUR BUSINESS 11

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