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Ltd company tax question

  • Thread starter Thread starter London Speech Therapist
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London Speech Therapist

Hi,

I currently work Full-Time for the NHS and I am also the director of my company that offers freelance private Speech and Language Therapy to families.

As I am unable to see all referrals myself I often contract them out to Ltd companies who carry the work out and invoice me.

I'm very confused about tax:
- I currently pay N.I and Income tax etc etc through my NHS salary.
- My company has a pre-tax profit of approximately £15000 and I put aside 21% Corporation Tax (calculated as income - expenses and then 21% of this). I take the remainder as dividends.

Is this correct or should I be paying more tax?


Thank you for your time.
 
London Speech Therapist said:
Hi,

I currently work Full-Time for the NHS and I am also the director of my company that offers freelance private Speech and Language Therapy to families.

As I am unable to see all referrals myself I often contract them out to Ltd companies who carry the work out and invoice me.

I'm very confused about tax:
- I currently pay N.I and Income tax etc etc through my NHS salary.
- My company has a pre-tax profit of approximately £15000 and I put aside 21% Corporation Tax (calculated as income - expenses and then 21% of this). I take the remainder as dividends.

Is this correct or should I be paying more tax?


Thank you for your time.
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I dont see anything wrong in this. Just make sure you have room for 10% tax credits on your dividends.
 
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you are sort of correct, there may be expenses that are not allowable or capital allowances to factor in as well.

You'll also need to prepare abbreviated accounts for companies house and full accounts for HMRC to go with the company's tax return.

I would recommend using an accountant, for such a small company the fees are not going to be too much.

There are plenty of accountants on the forum who'd be happy to give you a quote.
 
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