taxation on second income

[Doug727]

I am employed and also have a limited company that has begun to earn me money.

I am confused about how the income from my limited company will be taxed and also what payment I will need to make (as the person working for the limited company) as regards NI - considering I will already be paying NI from my PAYE job and income tax aswell.

I am completely new to running a limited company and would like any views on the best way to manage these to incomes so that I do not get clobbered by tax

Many thanks in advance to anyvbody who can shed some light on things for me

Dale

[Peter D]

If you have a limited company you must be preparing annual accounts and submissions to the Inland revenue. They can then control the appropriate tax code and direct on emplyoer to use the Allowances and the other to use BR Base Rate. The Tax Return will establish the total income and therefore the potential 40% tax rate. Pop into your local tax office or talk with the IR people that reside witnint a Job Centre Plus Centre. Regards Peter

[deanshepherd]

You should really seek professional advice to make sure the income derived from your company is taxed in the most efficient manner.

It is possible, and in fact probable, that you will not pay any NI contributions on your limited company's income but the structure needs to be right for your specific circumstances.


Dean
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk

[Peter D]

Absolutely. Regards Peter