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TaxScouts sort your Limited Company taxes

  • 3 min read
  • Last updated 31 Jan 2024

Limited Company taxes. Over here! 👋 Yep. You with the business. Let’s talk.

Limited Company taxes 🤢 Who wants to sort them? Not you. 

We do, though. For better or worse, we’ve got your back 🤝

How do Limited Companies pay tax? 

Before we answer your question, let’s be clear about what a Limited Company is 🔍

A Limited Company is NOT the same as a sole trader (a.k.a a self employed person) business. 

But how do you tell them apart? Well, a Limited Company is considered to be its own legal entity. This means the company’s finances are separate from your personal ones. 

This is different for sole traders. As a sole trader, there is little distinction between you and your business. So, any business debts will become your debts, and so on 🤕

To get the full picture, check out our blog Sole Trader vs Limited Company which one to choose?

What tax do Limited Companies pay?

We’ve already set the scene, so you should know by now that things work a little differently for Limited Companies 🤔

Unlike sole traders, Limited Companies don’t have to pay Income tax. Instead, they pay something called Corporation tax 🪄

Corporation tax is a tax paid by businesses based on their yearly profits.

If you run a Limited Company and your business makes £50,000 or more a year (minus any allowable expenses), you’ll pay tax at a rate of 25%. Anything under and you’ll pay tax at a rate of 19%. 

Unlike sole traders, Limited Companies are not entitled to a tax-free Personal Allowance 😢 But, that’s not all. 

Is your Limited Company earning over £85K a year? Congrats 👏Just don’t forget about Value Added Tax (VAT). This is a tax added to most goods and services in the UK, at a current rate of 20%.

Last but not least, you’ll need to pay Employers’ National Insurance contributions if you employ staff. 

For most of us everyday folks, National Insurance is deducted from our monthly salary via PAYE. But, Limited Companies with employees will need to pay HMRC 13.8% in National Insurance for employees earning over £242 per week in the 2023-2024 tax year. 

How does Limited Company tax work with TaxScouts?

Now we’re at the crux of the conversation and we’re diving straight in 🏊

The first step? Ask for help. 

No, literally, ask us! Tell us exactly what you need help with and we’ll hand-match you with the best, most qualified accountant for your needs. Then we’ll give you a quote. If you’re happy with it, your very own accredited accountant will be in touch 🤙

Who’s this service for?

Everyone! Well, that’s everyone with a Limited Company… Oops! 🫣 

In short, it’s for people who want to never stress about their company taxes again (because you have professional supportto talk about your tax-related thoughts, feelings and innermost concerns) 🫶

Here are some examples of what we can help with:

  • Company formation 🐣
  • Limited company tax returns
  • Accounts & Bookkeeping 📚
  • VAT/VAT returns
  • Taxation & tax planning
  • Payroll 💸
  • Financial reporting

And much more!

How is this service different from the others?

It’s for Limited Companies. Duh! 🙄

We’re just teasing. It’s a great question. 

Unlike personal tax returns, Limited Company returns are often extra-taxing 🫠They offer their own set of challenges and should not be underestimated! And so was born ourur Limited Company service. Challenge accepted 💪

What do you get with our Limited Company tax service? 

If having your Limited Company taxes sorted and filed for you wasn’t enough to get your taste buds tingling, then this lot will: 

  • A network of vetted accredited accountants ✅
  • A 100% commitment-free quote
  • A helping hand from our support team along the way 🤗

And there’s more where that came from! 

Help me maximise my tax knowledge 🤩

To learn more about the service that’s flexible, a time and money saver, and completely under your control, click here.

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