You are here » Home » Limited Company & IR35 » Personal Tax 

Personal Tax

Self Assessment

Personal tax is paid on the salary and dividends (if a higher rate tax payer) that are withdrawn from the company.  Each month a salary may be drawn from the business, which as a minimum must satisfy national minimum wage requirements. 

As part of Nasa Consulting's bookkeeping service, your personal accountant will be able to advise you on efficient salary strategies according to your individual requirements. 

 PAYE and National Insurance must be paid on any salary element each quarter to HMRC.

Income may also be drawn from the limited company as Dividends, which has the benefit of not attracting NIC deductions.  Tax on dividends is actually paid by the company as part of the 21% Coporation Tax it pays, but if you are a higher rate earner, then you will pay an extra 22.5% on your self assessment on earnings over the higher threshold.  We will do the supporting paperwork to classify the money you take as either salary or dividends in your company accounts.

Higher rate tax on dividends is calculated in the self assessment at the end of the tax year.  It is payable thereafter, but may be payable in advance if HMRC ask you to pay it on account in anticipation of your earnings.

Self Assessment

Nasa Consulting offers a Self Assessment service for our limited company contractors as part of our overall service.  This will be correspond to the tax year in which you have used our services and will include income from your limited company and any other sources such as; property, savings, investments etc.

Home | Limited Company & IR35 | Nasa Umbrella Company | SME Accounts | Accounts & Taxation | Articles |  Contact us | Site map | Terms of Use | Privacy Statement