Posts Tagged: dividends

Where do I find my yearly income figure?

It’s Tax Credits Annual Review time again! What was your yearly income? You have all your financial documents in front of you but there are so many figures, profit before tax, profit after tax, not to mention dividends! Which one do you need? Whether it’s for tax credits or a mortgage application, when you work… Read more »

Can I buy personal items from my business account?

Can I buy personal stuff from my business bank account? It’s a question that we get asked quite a lot. In fact it’s a question I wish more people would ask, as there’s a very simple answer to this one. Yes you can, but please don’t! It can be very tempting to get the business… Read more »

How do I prove my self employed income for a mortgage?

One of the downsides to being self employed is when you come to get a mortgage. For someone who is employed, it’s generally easy to get a decision in principle and proof of income is often a matter of producing past payslips. When you are self employed (whether as a sole trader or a limited… Read more »

Dividends for directors are changing

From April 2016 the way in which your dividends are taxed is going to be changing significantly. It will affect the tax that you pay in order to take profit out of your limited company. This change was announced in the July 2015 budget and became part of the 2015 Finance Act. How do things… Read more »

Summer budget secrets and what they mean for you.

There was a lot of media coverage over the Chancellor’s summer budget with the usual discussion over average households, who will benefit and who will lose. Flying pretty much under the radar, almost unnoticed through all of this, were some budget changes that will have significant impact on small businesses in the UK. These budget… Read more »

Why is my director’s salary such a strange amount?

Have you ever wondered why your director’s salary such a strange amount? Why does it change each year and why isn’t it a nice round figure? Where do these odd figures come from? It’s all to do with one of the main advantages you have as a company director. One of the benefits of having a… Read more »

Are my earnings the same as my profit? How do I know how much money I’ve made?

How much has my business made this year? The big question for all business owners. It feels like it should be very simple – sales less expenses surely equals profit. Yet somehow when you get your accounts back there are so many different figures, drawings, dividends, directors account, profit, taxable profit and all different. Not only that,… Read more »

What is the director’s loan account?

If you have just started up a limited company, the director’s loan account can be one of the trickiest concepts to get your head around. But I promise you it’s not impossible. It is necessary in understanding how you relate to your company and more importantly, how you can get at your lovely profits. What isn’t a director’s… Read more »

How do I take the profit from my business?

Your business is in profit, fantastic. Now you want to be able to use some of the money. How do you take profits out of your company so that HMRC stays happy? 1. Profit from Self Employment (or Partnership). This is actually quite straightforward, for an accounting concept! If you are self employed then you… Read more »