If you run a Contractor Limited Company it is a good idea to know about Capital Gains Tax and Entrepreneurs Relief. Are you a highly skilled expat Contractor? Would you like to maximise your contract income and work towards a visa extension or visa transfer? If so Commonwealth Contractors can help! To discuss your situation […]
Category Archives: UK Taxes
Life would be far simpler if dividend Income was subject to tax at the same rate as earned income, and you got a personal tax credit for the corporation tax paid by the company before it declared your dividend. Unfortunately, this is not how it works. Instead dividends are taxed at a lower rate than […]
If a Company in which you own shares makes a profit, it will generally be subject to corporation tax on its profit. After allowing for tax, any profit remaining may be distributed to the shareholders in the form of a Dividend. UK taxpayers are liable to personal income tax on dividend income if that dividend […]
In the UK, the taxation of savings interest income is relatively straightforward. The key points are:
National Insurance Contributions (NICs) are payable on employment income (further to Class 1) and self employment income (further to Class 2 and Class 4). Contributions are paid in order to gain entitlements to ‘State Benefits’, including the State Pension and the National Health Service (NHS).
As a Contractor you need to pay Income Tax on (1) PAYE earnings received via an Umbrella Company, OR (2) on Salary and Dividends received via your own Contractor Limited Company.