New limited company first year tax returns due. Have I got it right?
Thanks for your time.
Last March I started a company and the company accounts year ends on the 3rd of March. I just want to run by you what I've gathered so far about tax implications for Limited Companies to see if I'm barking up the right tree :)
I'm all up for getting an accountant to do the actual end of year returns but I want to understand my company accounts too!
So based on an example total turnover of £50,000;
Total turnover: £50,000
Salaries (myself and my wife at £442 per week): £10,608
Total expenses: £25,608
Total pre-tax profit: £24,392
Total corporation tax due (20%): £4,878.40
Profit available for dividends: £19,513.60
- Does this look correct?
- I only have to fill in a Limited Company tax return? Or are there more forms?
- Paying ourselves this salary which is the NI threshold, the company doesn't have to pay tax on the salaries?
- My wife and I, we don't have to pay tax on these salaries either?
- I'm able to then give the remaining amount (or a part thereof) to myself as dividends. The company doesn't pay tax on dividends. Do I have to pay tax on those dividends?
- Finally, do we have to fill in a standard self assessment? Or not because we are seen as an employee of the company and the salary is below the NI threshold?
Thanks for your time!