Contractors currently working through a limited company may find that their tax bills rise substantially
From October 2020, many subcontractors and contractors in the ‘construction industry’ will need to account for VAT differently, by using the ‘reverse charge system’.
Pick the tax relief which suits your specific circumstances and future plans
Whether you’re just starting out in business, or have been at it for a while, there are three main types of ‘trading vehicle’ to consider if you want to make...
Minimise your VAT charges & make more profit
A limited company can have many benefits, including reduced tax bills.
A £10,000 trading loss could be worth £4500 tax relief in one year and £0 in the next, or vice versa.
So choosing where and when you offset is worth proper consideration.
Its one or the other and you are responsible for applying the correct rate.
Get it wrong and either HMRC or your customer will quite rightly expect you to pay.
MTD - are you and your software ready?