Holding Company Benefits UK: A Director’s Practical Guide
You're probably looking at this because your limited company is doing fine, cash is building up, and you're starting to ask a sharper question than “how do I save tax this year?”. The question is whether your current structure is still fit for purpose if you want to retain profits, launch a second business, protect […]
What Taxes Does a Limited Company Pay in the UK
You've probably had this moment already. The company bank balance looks decent, the year's trading feels solid, and yet the cash never seems to be fully yours. One payment goes to HMRC for Corporation Tax. Another leaves the account because you registered for VAT. Then payroll runs, and National Insurance appears on top of salary. […]
Associated Company Rules Explained for UK Directors
You set up a second limited company for a side project, a separate contract, or a future idea. It felt tidy and sensible at the time. Then your corporation tax estimate no longer looks right, and nobody warned you that adding another company could shrink the profit bands available to each one. That's where associated […]
Employer Pension Contributions Maximum UK Guide 2026
There is no statutory cap on what a UK employer can pay into a pension, but the practical maximum for most directors is the £60,000 annual allowance across all pensions for 2026/27, with corporation tax relief available only where the payment is wholly and exclusively for the business. A director can therefore approve a contribution […]
Class 1A National Insurance: A Director’s Practical Guide
A P11D lands on your desk in July. The benefit package looks familiar, perhaps a company car, private medical cover and a pension contribution, but the company's bank account sees something else: an employer-only National Insurance bill that wasn't included in the dividend plan. That's why Class 1A National Insurance deserves more attention than a […]
Buying a Car Through a Limited Company: A UK Guide
You've got a profitable limited company, a car due for replacement, and a familiar temptation: put the next vehicle through the business and reduce the personal cost. Perhaps the company has £45,000 of profit available, and you're deciding whether that money should fund a new car or be extracted and used to buy one privately. […]
How to Reduce Taxable Income: A Practical UK Guide
You've finished a strong year, the company account has cash in it, and your bookkeeping software shows a familiar problem. Salary has been paid, dividends are being considered, and the tax bill looks larger than it should. The instinct is to search for one clever deduction. That's usually the wrong approach. The better question is […]
Limited Company vs Sole Trader Calculator UK Guide
You're looking at a strong contract, your profit is climbing, and the question keeps coming back: should you stay a sole trader, set up a limited company, or move from one structure to the other? The answer isn't determined by your job title or what other contractors are doing. It depends on profit, extraction, IR35, […]
Business Tax Planning for UK Limited Companies
You've reviewed the accounts, the company has made a healthy profit, and the familiar salary-plus-dividend arrangement is still in place. It worked when profits were lower. Now corporation tax bands, dividend tax, National Insurance, pension allowances and personal income all interact, so the same arrangement may no longer be the most efficient route. Effective business […]
What Are Growth Shares and How Do They Work
A director of a growing UK limited company often reaches the same uncomfortable point. The business has built real value, a senior employee needs a reason to stay, or a family successor is ready to become involved, but issuing ordinary shares would hand over part of the value created before that person arrived. That's the […]