Tax made simple for Limited Company Owners and Contractors

Understand the big tax savings that can be achieved with a Limited Company and all the technical tax details involved
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7 students enrolled
Instructed by Thush John Business / Finance
$50
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  • Lectures 57
  • Contents Video: 3 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 2/2015 English

Course Description

  • Do you struggle to understand the complicated UK Tax system?
  • Do you know the different tax savings that can be achieved by working through your limited company?
  • Do you know what filing responsibilities you have when you run a limited company, i.e. VAT, Self-Assessment Return and Corporation Tax?
  • Do you understand the advantages that you can use by running your business through a limited company?
  • If you are thinking about doing freelance work but would like to set up your own limited company, then most accountants would agree that this is the most tax efficient way to work. However, running a limited company rather than working as a sole trader can seem a bit of a daunting prospect with the additional paperwork and administrative responsibilities. Limited company taxes are indeed more complicated but people are often put off by the terms and jargons used. Don’t let this put your off from forming your own limited company as there are several clear benefits to your income. This course is designed to go through in detail what it means to set-up and run limited company, what the tax savings are and how you can reduce your tax bill through several strategies and therefore retain more of your company income/profits and pay less tax to the HMRC.

    What are the requirements?

    • Introductory course so no actions needed

    What am I going to get from this course?

    • Understand the benefits and drawbacks of using a Limited Company
    • Understand why companies can be powerful Tax shelters
    • Understand the complexities around how Companies are Taxed
    • Detailed examples of how much money you can save in Tax by using a Company
    • How to make sure your Salary is a Tax deductible expense
    • Understand the Tax benefits of Dividends
    • How to adjust your Salary and Dividends when total income from all sources reach certain key Tax thresholds
    • How to use Companies to increase your Tax savings
    • Expenses that a Company can show to reduce their Tax liability
    • Understanding how VAT works and the Flat rate VAT scheme
    • How to save thousands of pounds in Tax by splitting income with your Partner or Family
    • How Company Owners can protect their child benefit payments when income is over threshold
    • How to withdraw more income from company over the Tax-free threshold
    • Tax planning for high income earners, over £100,000-£150,000
    • Borrowing money from the Company – Directors’ loans
    • How Company Owners are affected by Capital Allowances and Capital Gains Tax
    • Pension Contributions will greatly reduce your tax whilst you build up your pension pot
    • Owning your property investments through Limited Company
    • Other benefits and risks of using a Company

    What is the target audience?

    • This course is ideal if you are interested in learning more about why set-up and run through a Limited Company and what the tax savings are and the HMRC requirements are, and ideal for current Limited Company Owners and Freelancers or Contractors that wish to or already work through their Limited Company who want to learn more about what it means to run a limited company, what Tax savings can be achieved and what the requirements are from the UK Tax office HMRC

    What you get with this course?

    Not for you? No problem.
    30 day money back guarantee.

    Forever yours.
    Lifetime access.

    Learn on the go.
    Desktop, iOS and Android.

    Get rewarded.
    Certificate of completion.

    Curriculum

    Section 1: Intro on setting up a Ltd Company, Responsibilities involved, Benefits & Risks
    Introduction & Learning Objectives
    Preview
    06:53
    Advantages of running your business as Limited Company instead of Self-Employed
    Preview
    05:30
    Limited Company for Contract Workers (Freelancers)
    02:55
    Disadvantages of being a Freelancer / leaving permanent employment
    01:55
    What does setting up and running a Ltd Company involve?
    02:20
    Sole trader businesses and Limited Companies Taxed differently
    03:19
    Setting up a Limited Company
    01:06
    Limited Company Filing Responsibilities
    03:40
    Section 2: How Companies are Taxed, Accounting Period/Financial Year & How to pay less Tax
    Accounting Periods and Financial Years
    01:30
    What is Associated Companies?
    02:09
    Corporation Tax on Income, and savings compared with Self-Employed
    01:54
    Personal Allowance, Income Tax on Personal Income and National Insurance
    03:21
    Tax bill on a high salary taken from the company
    02:04
    Section 3: Taking money from the company – Salary and Dividends
    How Directors pay themselves – Salary vs Dividends
    02:30
    What is a Dividend?
    02:28
    Tax on Dividend Income of Directors
    06:28
    Income upto £100,000 with £7,956 vs £10,000 salary
    02:00
    What is PAYE (Pay As You Earn)?
    01:06
    Section 4: Taking money more Tax efficiently
    Controlling Your Income Tax Bill
    04:17
    Why Take a Small Salary and how much salary to take?
    06:04
    Key Points about Salary & Dividends
    02:18
    Profit extraction tips for Companies
    00:57
    Section 5: Understanding VAT
    What and Why register for VAT?
    05:54
    Flat Rate VAT Scheme
    05:12
    Section 6: Expenses a Company can show to reduce Tax Liability
    Business expenses you can claim
    08:20
    Section 7: How Couples or Family can save Tax by splitting Income
    Couples or Family can save Tax by splitting Income - Split your Dividends
    02:14
    How Tax-Free Income can be doubled?
    01:40
    Conditions on Splitting Dividends
    03:53
    Dividends to non-spouses must be earned
    01:20
    Section 8: Owning a company and having income from other sources
    Company owners with more than one income source
    01:33
    Section 9: Taking Higher Income Tax Efficiently
    Taking £100,000 or higher annual income
    02:59
    Short-term Tax planning
    00:59
    Future, long-term Tax planning
    01:40
    Section 10: Doing your Self-Assessment Return
    When do I pay Income Tax?
    01:10
    Self-assessment Tax return (SATR)
    05:27
    SATR – how to avoid/reduce Payments on Account
    02:28
    How to delay paying Tax when income taken is higher than Basic-rate?
    02:15
    Section 11: Pension Contributions
    Pension Contribution is Tax efficient
    02:34
    How does Salary affect Pension?
    01:48
    Pension Contributions
    03:46
    Section 12: Keeping Your Child Benefit
    Keeping your Child Benefit
    01:38
    Reduce or Avoid Child Benefit Tax charge
    02:00
    Section 13: Company Loans to Directors
    Directors’ Loan
    04:12
    Directors’ Loan – Benefit In Kind
    05:34
    Benefit In Kind – The 30 Day Rule
    03:26
    Should Directors pay interest on their Directors loan?
    02:24
    Benefit In Kind exemption for Loans used to invest in another company
    00:50
    Section 14: Capital Allowances and Capital Gains Tax
    Introduction on what is Capital Allowances
    06:54
    When expecting large Capital Gains, take lower income to reduce Tax
    02:36
    Benefit in Kind for company car, Mileage Claim
    01:56
    Holding property in limited company
    03:01
    Company pays you rent
    04:02
    Mortgage Interest
    01:17
    Advantages of Using a Company to Invest in Property
    01:50
    Disadvantages of Using a Company to Invest in Property
    02:13
    Section 15: Entrepreneur’s Relief & Moving Abroad to Avoid Tax
    Entrepreneur’s Relief
    04:07
    Moving Abroad To Avoid Tax
    05:10

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    Instructor Biography

    Thush John, Limited Company UK Tax Advisor, Freelancing Project Manager

    Having graduated with a PhD, I moved into Project Management and have gained so far 8+ years of experience. In the last couple of years, I set up my own limited Company and worked under it as a Contractor/Freelancer. By working through my own company I have very much enjoyed the flexibility and control I have on my income and my Tax liability. I didn't like relying always on my Accountant to tell me how much money I can and can't take out of the company, what's tax deductible, how much tax, VAT, etc I have to pay every year, and not to mention the high fees the Accountants charge for all this work. A lot of the information available on the UK HMRC website and other sources use technical language which makes it very difficult for some to understand the UK Tax system. So I made it my mission to learn as much as I can about the UK Tax System, do the Tax returns and Accounts filing myself to save money on the hefty Accountancy Fees. I also decided to explain it simply to those who want to learn and have more control over their Limited Company finances.

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