Taxes - Ltd Company

[notrich-yet]

Okay so everything is now in place and I've sent out my first invoices. However I have some questions about how exactly I pay my taxes.

I alsways assumed that as a director I am self-employed, I would pay NI quarterly and file an annual return to the inland revenue.

In this situation I assumed I would be paid a gross fee for my services and all taxes and NI would be decucted from me personally and not the Ltd company?

The only tax the Ltd company would be liable for is corporation tax, which I don't pay until I have more than £10,000 of profit.

[bwglaw]

Not all correct.

If you are the controlling Director/shareholder you are likely to be self-employed under employment law and according to the HMRC.

As a Director you do not need to pay NI contributions. You can be paid up to the personal allowance, which I think is around £4800 and this can be paid via PAYE without tax/NI. Any further payments can be paid as dividends provided you are in profit.

I tried to manage my business without an accountant and then with just a book-keeper and I now see the beenfits of using a Chartered Accountant who looks after all matters for us for a fixed fee.

It makes good sense to have an accountant on board in the early days because you are likely to need him/her at the end of your financial year

[notrich-yet]

I've just emailed JoyandCo to see what can be done for me. Thanks for the advice.