[Shrek]

When LTD - do you have to make a payment on account?
Also iv read you pay your corporation tax every 9 months is this correct?
Also iv read you need to file year end accounts every 12 months , does this mean another payment is due on top of the corporation tax?
Cheers 👍

[Arnold Palmer]

When LTD - do you have to make a payment on account?
Also iv read you pay your corporation tax every 9 months is this correct?
Also iv read you need to file year end accounts every 12 months , does this mean another payment is due on top of the corporation tax?
Cheers 👍

Speak to an accountant.

[Richard iSparkle]

if you're making the change make sure you have a good reliable accountant otherwise you can get in a lot of bother IMHO

[Stoots]

I went ltd a year ago. Coming up to my year end this month.

I've no idea on any of what you said.

I'll just wait till my accountant tells me I owe something.

[Stoots]

if you're making the change make sure you have a good reliable accountant otherwise you can get in a lot of bother IMHO

What kind of bother?

What can go wrong?

[Shrek]

Iv got a very good accountant , I received his email today but alot of it goes over my head lol
Gonna have a chat with him tomorrow but thought I’d see if I can shed some light before I speak to him

He gave me a quote too

In summary for the year:
£75         Forming a limited company including paying online fee
£500       Preparing the accounts for a limited company & submitting the annual return for the company which states current directors and shareholders plus any changes during the year
£120       Preparing the CT600 Corporation Tax return & computation

[Crystal-clear]

Find yourself a good accountant. Expect to pay about £700+ per year a bit more for VAT.
 you don't make payments on account anymore like self employment that will stop. Instead you will be employed via your limited company and your accountant should advise you to take a director's salary which is around £719 a month you will be required to complete self-assessments only if you have received dividend payments from your limited company or any other income you may have. So you will still need to possibly file personal accounts depending. Towards the end of the tax year you will know where you are with your profits your accountant will then advise you to withdraw more money via PAYE via a director's loan or via a dividend payment in a nutshell he will work out the lowest rate of tax for you every situation is different .Going Limited and being paid via this method is good but it does have complicated accounts so any potential savings you make do get eaten up a little bit by the expense. That said you can choose what to pay yourself. You can roll the money up in the limited company and that's when you pay corporation tax on what's left. Also have you ever taken a month off work? During that month your salary with your account. If you need more money you can draw it out via one of the methods. If you leave your profits at your company they will be taxed at The Corporation rate which is I believe currently 19% soon to be 17% if you want to draw above the 12500 with National Insurance and income tax you would have paid somewhere close to 30%.

If the money rolls over you'll pay the Corp tax but then the following year you will get another tax free allowance . It's definitely wise to pay yourself a sensible amount of money each year and put some away into savings  otherwise if you need it all in one go you will pay a lot of tax in that particular tax year

hope this helps! but definitely get an account seems you have.

[Shrek]

Find yourself a good accountant. Expect to pay about £700+ per year a bit more for VAT.
 you don't make payments on account anymore like self employment that will stop. Instead you will be employed via your limited company and your accountant should advise you to take a director's salary which is around £719 a month you will be required to complete self-assessments only if you have received dividend payments from your limited company or any other income you may have. So you will still need to possibly file personal accounts depending. Towards the end of the tax year you will know where you are with your profits your accountant will then advise you to withdraw more money via PAYE via a director's loan or via a dividend payment in a nutshell he will work out the lowest rate of tax for you every situation is different .Going Limited and being paid via this method is good but it does have complicated accounts so any potential savings you make do get eaten up a little bit by the expense. That said you can choose what to pay yourself. You can roll the money up in the limited company and that's when you pay corporation tax on what's left. Also have you ever taken a month off work? During that month your salary with your account. If you need more money you can draw it out via one of the methods. If you leave your profits at your company they will be taxed at The Corporation rate which is I believe currently 19% soon to be 17% if you want a draw above the 12500 with National Insurance and income tax you would have paid somewhere close to 30%. If the money rolls over you'll pay the Corp tax but then the following year you will get another tax free allowance . It's definitely wise to pay yourself a sensible amount of money each year and put some away into savings rather then otherwise if you need it all in one go you will pay a lot of tax in that particular tax year

hope this helps! but definitely get an account seems you have.

That’s a great help! Much appreciated, cheers pal 👍

[Richard iSparkle]

if you're making the change make sure you have a good reliable accountant otherwise you can get in a lot of bother IMHO

What kind of bother?

What can go wrong?

see crystal clear's post!

[Shrek]

Think I might register my business on a tax free island 🌴see how that works out