IMS Accountancy understands that to help meet client challenges and opportunities successfully in a global economy
As a sole trader, all of the profits made by your business are taken as income. You’ll pay income tax and National Insurance Contributions (NIC) based on government thresholds.
All partnerships need sound professional advice, and completion of the tax and accounts involves special rules. These can be fairly complex. No matter how complicated though, we can take care of everything for you.
1. Prepare the partnership accounts
2. Discuss the draft accounts
3. Prepare and submit the partnership tax return
4. Prepare and submit the partners’ personal tax returns as required.
If you are operating as a limited company, you’ll pay Corporation Tax (currently at 19%) on your company profits, and can pay yourself through a combination of dividends and salary (usually set at the primary threshold for National Insurance). This will minimise your PAYE (tax you pay on your earnings throughout the year) and NIC outgoings. Any further payments you make to yourself will usually be taken as dividends.