Free Guides for new and growing businesses from HRBS - fixed fee accountants and business advisors

Tax deductible expenses guide to tax deductible expenses Tax deductible expensesThere is a great deal of confusion as to what you can and what you can’t deduct from your profit for tax purposes.

This tip gives a brief list of the types of expenditure you can claim, some of which you may already be deducting, some may be new to you and applicable to your business.

In general, costs enabling you to run the business and are incurred wholly and exclusively for business purposes are tax deductible.
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A quick guide for your new limited company

hrbs quick guide to limited company A quick guide for your new limited companyGetting at your profits

Extracting your profits from your company can be by a mix of wage (ie under PAYE) and dividend. To pay a dividend the company must have sufficient after tax profits.
eg for a £10,000 dividend to be paid the company must have at least £12,346 pre-tax profits (corporation tax rate of 19%).
ie £10,000 = £12,346 profit minus £2,346 corporation tax

Do not be tempted to withdraw more than is legally available as dividend, as it would be void and treated as a loan repayable to the company. If the loan is to the director it would be a taxable benefit in kind if over £10,000 .

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