New limited company first year tax returns due. Have I got it right? | AccountingWEB

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

Expenses: £15,000
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!

There are 26 comments. Login or register to view them.

I have to be honest with you.

Fred Smith |


thisistibi |
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Practical stuff...

wilcoskip |


sgray |


sgray |


petersaxton |
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petersaxton |
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don't forget companies house

taxhound |
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Use of home as office

petersaxton |
petersaxton's picture

If you started trading on 3

young ronaldo |

Limited company

peterlashmar |
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Get an accountant

asillahi |


khalm0 |

Any Answers or Touting For Business?

petersaxton |
petersaxton's picture

EU directive re cash accounting

Malcolm Veall |
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petersaxton |
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It's sad really

Chris Smail |
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I can see the cost saving

Fred Smith |


thisistibi |
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The OP doesn't say whether a

Bob Long |


petersaxton |
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thisistibi |
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Self assessment v Limited company

petersaxton |
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I can fix my car ...

Old Greying Accountant |
Old Greying Accountant's picture

Agreed. I can do DIY, but I

Bob Long |

abbrievated accounts

stephen linge |