Taxes

UK Corporation and company tax

What is a corporation tax?

A corporation tax is government tax that every UK registered company is required to pay. Companies, just like people, are subject to government income taxes. The corporation tax is calculated using the company’s profits. If you set up a limited company, your company will be asked to pay corporation tax on any profits that it makes. Income for companies is a little bit different than income for individuals, but similar… ReadWhat is a corporation tax?

IR35 and limited companies

IR 35 and limited companies

IR35 is tax legislation targeting ‘disguised employees’. A disguised employee is someone who operates as a permanent employee for a client but works through their own limited company to reap the tax benefits. As a contractor, you will be either ‘inside’ or ‘outside’ IR35. Outside means, you are operating as a legitimate business, and therefore outside of IR35 rules. If you are ‘inside’ IR35, this means you are considered, for… ReadIR 35 and limited companies