It’s always great when you make a profit on a valuable item or asset. In accountancy terms this is called a ‘Capital Gain’. Tax is paid on the amount you ‘gain’ on the asset or item. depending on what it is you’re making a profit on and if the gain over the tax year is £11,000 or more.
Student loans are the one sore point of spending three plus years studying hard at University. Paying it back is also a drawn out process, with 9% of a permanent employee’s salary going to the student loan company once you earn over £16,910 (£21,000 if your course starts in September 2012).
We’re all about tax efficiency here at Churchill Knight. Umbrella or limited company options both have advantages; however the main reason for choosing to work as a contractor through a limited company is that the taxable benefits outweigh the simplicity of working through an umbrella company.
HMRC is well-known to have time-consuming and sometimes complicated forms that you are required to fill out as a limited company director. The P11D is one of these; essentially, a P11D reports the benefits paid out to a company’s employees. These items are known as ‘benefits in kind’ and as a contractor with a limited company, you may at some…