How is a company taxed?
pay corporation tax. This tax is charged on the Company's
profits which include both income and chargeable gains. A
Company's income for tax purposes is basically calculated
in accordance with income tax rules. Chargeable gains are
basically calculated with capital gains tax rules.
happens if the Company incurs a loss?
the Company incurs a loss it can offset those losses against
any other income in the same year or against future years
profits in the same business.
Companies must submit a corporation tax return no later than
nine months after the end of the Company's accounting year
do I go about setting up a company?
you wish to set up a Company you would be best advised to
talk to an Accountant first. All companies are registered
with the registrar of companies at companies house. Once set
up a Company is a legal entity separate from the persons who
formed it, the directors or shareholders. Specialist agents
can be found to set up a Company on your behalf or your Accountant
should be able to help you in this respect.
I set up a Company, how will I be taxed as a director?
you are a director of a company you will probably be paid
by the company and as such you will be an employee of the
Company and your pay will be subject to normal deductions
do I decide whether to trade as a sole trader or as a Company?
There are many factors
that should be considered before you set up a Company and
your individual circumstances will dictate whether you should
do so or not. In addition to the taxation issues, you need
to consider, there are various other practical and legal matters
which should be taken into account when setting up a Company
and on which you should seek advise from your Accountant.