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Rent plus a Job

Trebor01
Trebor01 Posts: 234 Forumite
Hi, I was until recently simply letting out my house for income and with most of the tax allowance maintenance etc I ended up paying very little tax. I have since then established my own Ltd company (only me in it) and have a job now through an agency and a low but steady income.

What are my best options to pay as little corporation tax vat etc that I can, and how does this work re tax returns, as I used to do a self assessment for my rental property, and my accountant is now looking after my Ltd company accounts.

Any help would be much appreciated.

Comments

  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    Trebor01 wrote: »
    Hi, I was until recently simply letting out my house for income and with most of the tax allowance maintenance etc I ended up paying very little tax. I have since then established my own Ltd company (only me in it) and have a job now through an agency and a low but steady income.

    What are my best options to pay as little corporation tax vat etc that I can, and how does this work re tax returns, as I used to do a self assessment for my rental property, and my accountant is now looking after my Ltd company accounts.

    Any help would be much appreciated.

    Asked and answered
    Some people form a ltd as a tax avoidance measure. The idea is that you pay CT at 20% and take dividends thus avoiding IT at 20%,40% & 45% and NI at 12% & 13.8%. The question you should be asking is how can I pay more CT as it is the cheapest option.
    The only thing that is constant is change.
  • Wywth
    Wywth Posts: 5,079 Forumite
    Trebor01 wrote: »
    Hi, I was until recently simply letting out my house for income and with most of the tax allowance maintenance etc I ended up paying very little tax. I have since then established my own Ltd company (only me in it) and have a job now through an agency and a low but steady income.

    What are my best options to pay as little corporation tax vat etc that I can, and how does this work re tax returns, as I used to do a self assessment for my rental property, and my accountant is now looking after my Ltd company accounts.

    Any help would be much appreciated.

    You will still be required to complete a personal tax return, and whilst you employ an accountant for your limited company afairs, you are still ultimately liable to HMRC for correctly filing your Corporation Tax return.
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