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ACE
Accounts & Tax
mini guide
The really easy mini guide
to running a limited company. This is your handy intro to ACE accounts & Tax and the things you need to
know about limited company tax, admin and law. We’ve kept it short and
sweet.
Anything else? Just ask.
Contents
1 Introduction: working
with ACE accounts
2 Company formation
Company name
Registered office address
Company directors
Accounting year end
Company shares
3 Share capital structure
Share capital
Shareholder/s
Settlements Legislation
4 Business bank account
5 Business insurances for VAT? Factors HMRC consider
Professional indemnity How do I register the company for VAT?
Public liability VAT schemes 13 Remuneration – ways to
Employers liability
11 Business expenses
withdraw funds
Expenses
Salary
6 Responsibilities & duties of
a limited company director What expenses can be claimed?
Legitimate business expenses
Salary to a partner or spouse
Dividend
7 Money laundering regulations Making an expense claim
24-month rule
40% rule
Business travel
Subsistence
Accommodation
Overnight incidentals allowance
14 Financial planning
Pensions
Income protection
Critical illness cover
Personal accident cover
Mortgages
Use of home as office
Company cars
15 Closing your company
8 Statutory filing
requirements & deadlines
PAYE and NICs
VAT
Corporation tax
Statutory accounts
Companies House annual return
Directors personal tax return
P11D & dispensation
9
Statutory record-keeping
10
Value Added Tax (VAT)
12 IR35
How does VAT work? What is IR35?
Do I need to register the company Inside or outside IR35?
1 Introduction:
working with
ACE accounts &
Tax
Now that you’re choosing to step into
the world of independence with your
own limited company, you’ll want
support that makes it all easy – that’s
what we’re here to do.
The whole point of contracting is
freedom. So you don’t want to be tied
up with admin. Yes, you’re the boss, but
we’re here to look after you.
Just some of the many services you get:
• super-fast set-up – less than 24 hours
• expert advice on tap – Personal
Qualified Accountant and support team
• top tech – accountancy software,
secure bank data-feed, 24:7 personal
portal
• core admin – VAT, tax and year-end
returns done for you
• real-time updates – for financial
insight and control
• director’s payroll and self-assessment
2
Company
formation When you decide to form your own
limited company, there are some
key areas you’ll need to consider
with your business objectives
in mind...
What happens once the company is formed?
Your contact at ACE accounts can form
the company for you within a matter of
hours. The following documents will then
be made available to you on your client
portal, which you may need to provide to
any party that wishes to do business with
your company – e.g. a recruitment
agency, a client, a bank for your business
banking, insurance companies and so
on...
Company name
It’s best to have a few names to choose
from, as your first choice may already
be in use or it may be very similar to an
existing company – in which case you’ll
need to seek their permission first. Your
contact at ACE accounts will be able to
check which names are available.
Registered office address
You will decide where you want your
company to be legally registered. You can
choose ACE accounts to act as your
registered office, or your home address, or
any other address you wish as long as you
can run a business from it.
Company directors
You must legally appoint at least one
director, which is usually yourself. There
is no longer a requirement for small
Companies to appoint a company secretary.
Accounting year end
We’ll help you choose the appropriate
accounting year end. This is the date which
your annual accounts are made up to and
is normally one year after the date of
incorporation.
Company shares
When you form your company, you will
be able to issue shares. This entitles the
shareholder/s to receive dividends in
proportion to their shareholdings.
3
Share capital
structure
The share capital in a private limited company is the amount of
money invested by its owners in exchange for shares of ownership.
How many shares a company can issue and when they can be issued
is set down in the company’s Articles of Association – essentially,
the company’s rule book.
Share capital
When forming a company, the director
(you) can allot shares to shareholder/s
– up to any number of shares as set out
in the Articles of Association.
Each share will have a fixed nominal value.
Most freelancers choose to own 100% of
the company by issuing themselves all
of the share capital, e.g. 10 ordinary
£1 shares, totaling a value of £10.
More shares can be issued later. Your
personal qualified accountant will be
able to help you with this.
Shareholder/s
Shareholder/s is the term used to
describe the owner/s of the shares in a
company.
Each share a person buys will give them
some rights in deciding how the company
is run, the greater the percentage of
the shares they own, the more control
they have. It also gives them a right to a
proportionate percentage of any dividends
issued by the company.
Settlements Legislation
The purpose of the Settlements
Legislation, commonly known as
Section 660, is to control who pays tax
on the dividend income derived from
shares allocated to a family member.
There is a common misconception that
when you set up your limited company
you can give shares to family members
in order to pay less tax by making use
of their tax-free allowances. But the
legislation, which targets arrangements
put in place to avoid tax, means that you
may remain assessable for tax on the
dividends you pay to them.
4
Business bank account
Once your company has been incorporated, one of the
most important first steps to take is to set up your
company’s business bank account. Your limited company
is its own legal entity separate from yourself and so you cannot use your own personal bank account.
With strict money laundering regulations,
opening a bank account can be a lengthy
process. So we strongly recommend that
you make a bank application as soon as
possible to avoid any delays in receiving
monies or being able to make payments.
Your clients should pay all monies owed
to the company into this account. All
funds in this account do not belong to you
personally until the company formally
pays you.
It’s totally up to you which bank you
choose for your business banking. You may
wish to liaise with the bank you already
bank with personally, or you can look
for other banks offering useful services
such as internet banking facilities,
downloadable statements, free banking
period offers, good interest rates…
It’s good practice if you choose to run two
accounts: a current account for everyday
banking transactions and a deposit
account to set aside funds for future tax
and VAT liabilities.
If you’re unsure, ACE accounts can
arrange for the Barclays Business Banking
Team to contact you within 24 hours of
your company being incorporated. They’ll
provide a fast-track service and book you
an appointment with a Business Manager
who can establish projected turnover,
international requirements and growth
aspirations to tailor your business banking
requirements.
5
Business insurances
When you run your own business, certain insurances may be needed.
Each one is designed to protect your business against claims from
different parties. Also, check your contracts to see if they stipulate
insurance requirements, and the levels of cover required.
We can put you in touch with specialist
business insurance providers Kingsbridge
Contractor Insurance. They can talk you
through your options, so you choose the
insurance package that’s right for you. They
offer very competitive prices. And we’ve
negotiated the market’s highest discount for
our clients.
Insurance certificates will be held
securely on your online portal, available
whenever you need them.
Professional Indemnity
PI provides you with protection against
claims made against your company as
a result of allegations of professional
negligence.
Most hirers require this insurance as part
of your contract with them.
Public Liability
PL provides protection against
claims for legal liability in respect of
accidental bodily injury to third parties,
or damage to third party property
arising in the course of your business
activities.
Although the hirer may not require you to
hold this insurance, it’s usually advisable
to have it.
Employers Liability
EL provides protection against claims
from employees of your company for
legal liability in respect of injury or
disease which arise in the course
of their work and for which you are
responsible.
Although the hirer may not require you to
hold this insurance, it is usually advisable
to have it and it’s compulsory if you
employ any additional staff.
6
Responsibilities & duties of
a limited company director
As a company director, you are ultimately
responsible for the running of your
company on a day-to-day basis and have
legal responsibilities and duties to uphold
under company law. You’re responsible
for ensuring that the company maintains
accurate accounting records to enable
the preparation of the statutory accounts
and returns.
Whilst ACE accounts will assist you
with the preparation of these returns,
we will be acting upon your instructions,
so our work does not relieve you of your
responsibilities as director.
7
Money laundering
regulations
To comply with the Money Laundering
Regulations, ACE accounts will request
identity and proof of address documents
from you once you agree to appoint us as
your accountant. The process is quick and
easy and you can securely upload your
documents onto your client portal.
8
Statutory filing requirements & deadlines
Every limited company must file certain
statutory documents by their deadlines.
Pay As You Earn (PAYE) & National Insurance Contributions (NICs)
PAYE is the scheme used to collect income
tax and NICs from the gross pay of any
employee. If your company is paying
you or another employee a salary, you
will need a PAYE scheme with HMRC and
submit returns under their Real Time
Information (RTI) system.
Deductions your company makes for
PAYE and NICs are paid to HMRC by the
19th of each month. The exception to this
monthly rule would be if your ongoing
average monthly payments were to be
less than £1,500 – then you could submit
your payments on a quarterly basis. With
your instruction, ACE accounts will
establish and administer either a monthly
or quarterly scheme for you.
Value Added Tax (VAT)
If your company is VAT registered (through
choice or obligation), quarterly returns are
submitted to HMRC at the end of the month
following the quarter end. So, for example,
if your VAT quarter is 1st January to 31st
March, the formal deadline will be 7th May,
but it’s good practice to ensure that they’re
submitted by the end of April.
We can prepare your VAT returns for you.
Corporation Tax
UK limited companies pay corporation
tax (CT) on their profits. The rate of tax
depends upon the level of profits earned.
Profits are calculated on the income (net
of any VAT) less the business costs of the
company such as salaries and day to day
running costs.
The deadline for receiving the Corporation
Tax Return (CT600), detailing the
company’s annual tax liability, is 12
months after the year end but the tax is
usually paid 9 months after the company
year end. Interest is applicable on late
payments. Earlier dates may apply within
the first year of trading. Your ACE
accounts online portal will remind you
of these important dates.
At ACE accounts we will prepare and
file your Corporation Tax Return for you.
Statutory accounts
The Companies House deadline for
receiving abbreviated annual accounts is 9
months after the company’s year-end.
We can help you prepare the annual
statutory accounts.
Companies House Annual Return (AR01)
Within 28 days of each annual anniversary
of your company’s incorporation date,
Companies House requires the submission
of an annual return. This details the
directors, registered office, share capital
and the shareholders. There are no financial
penalties for late filing, but Companies
House may strike off your company from
their register if the return is late.
We can assist you with filing this annual
return along with a set of abbreviated
accounts.
Personal tax return of directors
As a director of the company, you’ll
complete an annual self-assessment tax
return detailing your income from all
sources. The self-assessment process will
calculate any additional tax due which
might include tax on benefits you have
received, if they have not been taxed under
PAYE, or higher rate tax on dividends.
If you’re a director shareholder, you may
receive part of your remuneration package
as a dividend. Dividends are treated as
paid by the company after deduction of tax
at 10%. This 10% ‘tax credit’ covers the
basic rate income tax liability when paid
to you. Further tax will be due at 25%, if
you’re a higher rate tax payer, or 36.1% if
you’re an additional rate tax payer, of the
net dividend you received. This additional
tax will be collected through your self-
assessment.
We can assist you with completing and
filing your self-assessment tax return.
P11D and dispensation
A P11D is an annual form that reports
the cash value of any benefits-in-kind or
expense payments received by directors
and employees during the course of
the tax year. This form allows HMRC to
calculate what additional personal tax may
be due. If you have applied for and been
given a dispensation from HMRC then this
form is not required for those expenses
listed in the dispensation.
At ACE accounts, we can help you
complete and file the P11D. Should you
wish to apply for a dispensation, we can
apply and obtain this from HMRC for
your company.
9
Statutory
Record-keeping
The company is responsible for
maintaining and keeping accounting
and business records for up to 6 years.
With the software that we provide,
together with our help, we make this
very simple for you.
10
Value Added Tax
VAT is a tax that is levied on most goods
and services sold in the UK and unlike
other taxes, VAT is one that is collected by
businesses on behalf of HMRC. The current
standard VAT rate for 2015/16 is 20%.
What VAT schemes are available?
How does VAT work?
Once your company registers for VAT, you
will charge VAT on all your sales invoices.
The good news is that you can reclaim VAT
on your business purchases made from
other VAT-registered businesses.
At the end of every three months your
company will submit a VAT return to HMRC
(ACE accounts can prepare this for you)
which details how much VAT you have
charged and how much you are reclaiming
for that period. You then pay or reclaim the
difference with HMRC.
Do I need to register the company for VAT?
You’ll need to register for VAT if your
company turnover exceeds the current
2015/16 VAT threshold of £82,000 at any
given point in a rolling 12 months, or
expects to do so in the next 30 days. This
isn’t a fixed period like the tax year or the
calendar year – it could be any period, eg
the start of June to the end of May.
What if I want to register for VAT even though I am under the VAT threshold?
If you haven’t exceeded the VAT threshold,
you can still register for VAT voluntarily if
it makes sense to do so. There are several
reasons why you might choose to take this
course of action:
• the clients who use your services
require you to be VAT-registered
• to make your business look more
professional
• the service you supply incurs lots
of expenses where input VAT can be
claimed from HMRC.
How do I register the company for VAT?
We can register your company for VAT.
Just speak to the ACE accounts team.
HMRC try to complete 70% of applications
within 10 working days, but sometimes it
may take longer. Once registered, you will
receive a VAT certificate from HMRC which
we can hold securely on your client portal.
While you’re waiting for your VAT number,
you can enter “VAT number pending” in the
VAT number section of your invoices.
There are two main schemes available:
Standard accounting v. cash accounting:
Under the standard accounting scheme,
VAT is paid based on the date invoices are
raised or received, regardless of whether
they have been paid. Small businesses
can alternatively use the cash accounting
scheme where VAT is paid at the end
of the quarter in which the invoice was
paid. Cash accounting is preferred for its
positive effect on cash flow.
Flat Rate Scheme (FRS):
This scheme is for small businesses with
an estimated annual turnover of less
than £150,000 excluding VAT. Under this
scheme, you do not have to calculate VAT
on each and every transaction. Instead, it’s
simply calculated as a flat-rate percentage
of the gross sales. The flat-rate percentage
is less than the standard VAT rate because
it accounts for the fact that you won’t be
reclaiming VAT on your purchases. The
percentage depends on which industry you
operate in. As an incentive, HMRC offer a
1% discount on the rate in the first year
of registration. For freelancers operating
a small business, the FRS is generally the
most advantageous VAT scheme.
11
Business expenses
What expenses can be claimed?
When it comes to claiming business
expenses as a director of a limited
company, it can be challenging to figure
out what you can and cannot claim. Whilst
in theory you can put almost anything
through your business, in reality the
company will not get tax relief on anything
which is not a legitimate business
expense. What’s more, you are likely to
end up paying more personal tax on the
‘benefit’ you receive from the company.
To know which costs are allowable for tax
relief, HMRC use the expression “wholly,
exclusively and necessarily incurred
in the performance of your duties” and
they will disallow any expenses that do
not fulfil this criteria.
It’s essential to obtain and retain receipts
for all expenses incurred in order to be
able to justify the expense if questioned by
HMRC. This should be a proper till receipt
or invoice, not just a credit card slip. Receipts should be kept for 6 years.
Legitimate business expenses
Legitimate business expenses are unique to
every business and they should contribute
towards the company’s future revenue
generation. They’re likely to include:
• accountancy fees
• business travel and accommodation
• subsistence
• postage, stationery and printing costs
• business telephone calls (if claiming
the cost of the line rental, then the
contract should be taken out in your
limited company’s name and payment
for the line should be made from the
business bank account)
• contributions to executive pension plan
• computer equipment and software
• technical books and business
journals
• training course fees (as long as the
skills are relevant to your business)
• business insurances
• certain professional subscriptions –
must be a professional body on HMRC’s
approved list: https://www.gov.uk/
government/publications/professional-
bodies-approved-for-tax-relief-list-3/
approved-professional-organizations-
and-learned-societies
• use of home as office (a flat £4 per week
without receipts is allowed by HMRC)
• cost of advertising and marketing
your business
• company bank charges and interest
• eye tests if you regularly use a
computer in course of your work
• business entertainment
• annual Christmas party event
allowance of £150 per employee.
HMRC do not allow...
...any expenses deemed to be personal/
non-business related. These can include:
• ordinary commuting
• items for personal use such as
cameras and televisions
• rent, mortgage or council tax of your
main residence
• private club subscriptions such as
gym or golf club membership
• clothing (except safety clothing) such
as business suits
• training courses not related to your
business
• glasses – unless used solely for
VDU use.
How is an expense claim made?
You claim via the accountancy software
provided by ACE accounts on your
online portal and then reimburse the total
expenses value to yourself monthly from
the funds held in your business bank
account.
24-month rule
Some expenses, such as travel to and from
home, subsistence and accommodation
can only be claimed where your workplace
is ‘temporary’. A workplace is a ‘temporary’
workplace if the assignment will last, or
you expect it to last, less than 24 months.
40% rule
One exception to the 24-month rule is
where you spend 40% or less of your time
at a site. Then all expenses travelling to
and from that site are allowed.
Business travel
Allowable business travel can include the
following costs:
• reasonable public transport
• personal car usage reimbursed at up to
45p per mile for the first 10,000 miles
in the tax year; and up to 25p per mile
thereafter
• personal motorbike usage reimbursed
at up to 24p per mile
• personal bicycle usage reimbursed at
up to 20p per mile
• parking and tolls – fines are not
permitted
Costs for maintaining a vehicle, such
as MOT, servicing and repairs are not
allowable as the HMRC approved rates
already incorporate a cost for this.
Subsistence
You can claim the reasonable actual
cost of meals that you are required to
buy whilst staying away from home on
business or travelling to a temporary
workplace – the cost of alcohol is not
permitted nor is the purchase of groceries
to assemble a meal.
Accommodation – hotels, B&Bs, secondary rental
If it’s not practical for you to travel home
overnight and you are required to stay
away from home overnight for business
purposes, you can claim the reasonable
cost of staying in a hotel or B&B. Where
you are required to stay away from
home for a longer period of time, you
can claim the cost of renting secondary
accommodation to meet your personal
needs provided you are maintaining a
primary permanent residence elsewhere.
Overnight incidentals allowance
If you’re staying away from home for
business purposes, in addition to your
subsistence expenses, to cover the
cost of incidentals such as laundry and
newspapers, you can claim a non-
receiptable overnight incidentals allowance
of £5 (UK) or £10 (abroad) per night.
Use of home as office
If there’s a desk area in your home where
you carry out business-related tasks, you
can claim an unreceipted allowance of a flat £4 per week to cover your incidental costs.
Company cars
As a director and employee of your own
limited company, the business can provide
you with a company car. The company can
pay for all the running costs including fuel,
servicing, maintenance and insurance,
and the car can be used for both business
and personal journeys. This all sounds
fabulous but there’s a catch, and it’s a
very big catch!
Company car tax
If your company provides you with a car you
will pay personal tax on the benefit. The
better the car, the more tax you will pay,
whereas environmentally friendly cars (with
lower CO2 emissions) are slightly more tax-
efficient. Whichever car you choose, the tax
is likely to be substantial and you need to
be aware of it before your company makes
the decision to purchase the car.
What is a benefit-in-kind?
A benefit-in-kind is any payment that your
business makes on your behalf over and
above your salary payment. This could
include the reimbursement of company car
costs, travel and subsistence costs, health
insurance, gym membership, the provision of
computer equipment for personal use, loans
to you, or any other ‘benefits’ even where
these are solely for business purposes.
What’s the alternative?
Company cars are rarely tax-efficient,
however there is an alternative. You
are entitled to claim a tax-free mileage
expense allowance for every business mile
that you drive in your personal car.
In the tax year 2015-16:
• for the first 10,000 business miles,
you can claim 45p per mile
• after 10,000 business miles, you can
claim 25p per mile.
This rate is intended to reimburse you not
just for your fuel but also wear-and-tear
and all car-related expenses you incur.
So if you drive 8,000 miles in your personal
car, you can claim £3,600 tax-free from your
company instead of paying tax to HMRC.
12
IR35
What is IR35?
IR35 is a piece of legislation which
HMRC introduced in April 2000. It
deals specifically with individuals who
‘freelance’ through a limited company
but work as if they are an employee of
the hirer. The initial intention of IR35 was
to stop a traditional employee leaving
his/her job one day, only to return to
work in the same or similar role shortly
afterwards, but working via a limited
company structure to reduce the amount of
income tax (PAYE) and national insurance
contributions (NIC) that they pay.
IR35 attempts to determine the true
employment status of the freelancer by
examining the relationship between them
and the hirer to establish whether it is one
of ‘disguised’ employment or a genuine
business-to-business relationship.
Inside or outside IR35?
Under the legislation, the onus is on the
director of the limited company to decide
whether a specific contract or assignment
passes or fails IR35.
If the relationship is assessed to be one
of employment, you are said to be ‘inside’
IR35 and as such need to pay PAYE and NIC
on 95% of the assignment income after
the deduction of any direct assignment
costs (which will include gross salaries
and pension contributions paid by the
company during the year).
If your contract falls ‘outside’ IR35, you can
take the more tax-advantageous route of
having a lower salary and higher dividends
which is the preferred option of most
limited company directors.
The IR35 status of an individual is
determined on an assignment-by-
assignment basis by a combination of
both the contractual terms and the actual
working practices.
Factors HMRC consider
HMRC have a set of guidelines to help
them form their opinion of employment
status.
The main three are:
• the right to send a substitute when
the principal worker (you) is not
available
• whether the worker can be told what
to do and how to do it (the level of
control)
• whether there is any obligation
for the worker to offer or provide
ongoing services to the hirer.
We strongly recommend that you get each
assignment you undertake professionally
reviewed so as to determine its IR35
contract status.
The ACE accounts team can put you in
contact with specialist IR35 advisors QDOS
who can talk you through your options
and help you determine whether you are
inside or outside of the IR35 tests. We’ve
negotiated a market-leading discount for
their services and you can interact directly
with them via your giant portal.
13
Remuneration – ways
to withdraw funds
Expenses
Expenses are the costs which you incur
personally on behalf of your business.
Your company can reimburse you for these
costs, however rules apply. Take a look at
our expenses information in chapter 11 or
contact the ACE accounts team.
Salary
You can pay yourself a salary at
whatever level you choose.
Although directors are not bound by the
National Minimum Wage (NMW), the
majority of freelancers choose to pay the
equivalent of at least the NMW at a higher
level, as:
• it utilizes your personal tax-free
allowance
• it preserves your National Insurance
contributions record
• it may be required for references or
mortgage applications
• it shows HMRC that you are covering
your normal outgoings with salary.
If your assignment falls ‘inside’ of IR35,
you will need to pay yourself the majority
of your income as salary.
Salary to a partner or spouse
Some freelancers may choose to pay a
salary to a partner or spouse in order
to benefit from their partner’s tax
allowance. To benefit from this, the
partner or spouse must be involved in
the running of the business and you
can clearly demonstrate this.
Dividend
A dividend is a profit-share payment
made from the post-tax profits of a
company, to the shareholders (owners)
of the company.
Dividends are generally a more tax
efficient method of withdrawing money
from your company, as they are taxed
differently to salary and are not subject
to National Insurance contributions.
14
Financial planning
Pensions
Company pension contributions represent
one of the most tax-efficient ways of
using business profits as it can save
National Insurance Contributions (NICs),
income tax and corporation tax.
You can choose to make pension
contributions personally, or your limited
company can make them for you (paid
from the company bank account).
Company Pension Contributions
The company can contribute up to
£40,000 each year into your pension
pot. This contribution will reduce your
corporation tax liabilities as it will be
treated as a business expense.
Personal Pension Contributions
You may choose to contribute into a
pension personally if you’re a higher-
rate tax-payer and would like to extend
your basic tax-rate band. This would be
beneficial if you only wanted to make
small pension contributions and you
would receive income tax and NICs relief
on this.
Income protection
As a freelancer operating your own
business, you do not have the protection
of sick pay, so it’s worth considering
income protection cover. When you’re
reviewing policies, you’ll want to ensure
that both salary and dividends are
covered.
Critical illness cover
On top of income protection, critical
illness cover can pay out a lump sum or
monthly allowance in the event of being
diagnosed with a critical illness.
Personal accident cover
You may wish to protect yourself as a
result of an accident that leaves you
unable to work. Plans typically pay out
a weekly amount whilst recovering from
an injury, or a lump-sum payment for
death or permanent disablement. We’ve
negotiated the best market discounts
with specialist business insurance
providers Kingsbridge who can offer
advice and very competitive prices.
Mortgages
The challenge freelancers often face is
that mainstream lenders don’t always
understand how freelancers work and
may see this as a barrier to keeping up
with mortgage repayments.
It’s well worth speaking with mortgage
brokers who specialize in the freelance
industry. They should be able to secure
you a competitive mortgage with many of
the mainstream lenders. We can introduce
you to specialists.
15
Closing your company
Dormancy
If you plan to take a long break from
freelancing, you may want to consider
making your company ‘dormant’. This
is a temporary suspension of some
services, but the company remains on the
Companies House Register as a trading
company and all returns still have to be
filed.
The advantage of putting your company
into dormancy is that the company
remains there and ready to use when you
need it – no need to re-register for VAT –
and the company bank account is already
up and running. You may need to re-
register for the PAYE scheme. The ACE
accounts team can help you with this.
Winding up
If you don’t think you’ll need your
company again in the foreseeable
future (eg if you take on a permanent
role) you can opt to wind it up. This is
permanent closure. The company will
be de-registered for VAT and PAYE, so
there’s usually just one final submission
to make.
Final accounts are submitted to HMRC
and then you can apply to have the
company struck off the Companies House
register.
If there’s money left in your company, you
have options to distribute the funds:
• make a company pension contribution,
which reduces your corporation tax bill
• pay the remaining funds out as a
dividend, which may be subject to
income tax
• distribute funds as capital, which has
a potentially lower overall tax charge,
as the distribution is subject to capital
gains tax not income tax, and it can
also attract Entrepreneurs Relief.
Questions then why not call in or call us
Technology House 151 Silbury Boulevard
Milton Keynes MK9 1LH
Tel No: 01908 424365 Fax: 01908 424347 Web: www.aceaccountax.co.uk
Email: info@aceaccountax.co.uk
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