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UK Taxes
 

Hello guys!

Are you aware of taxes in the United Kingdom?

If so can you explain it?

My plan is to form an LTD company. I know for company rate is flat 19%.

But when it comes to personal tax I'm a bit confused with tax brackets.

Are you aware of National Insurance?
If so can you explain it?

Do you know for example how much tax I will pay if I make 80-100k net profit per year?

Can you share some ideas for tax optimization?

Thank you for your attention!
Alex

Re: UK Taxes
 

You need to talk to an accountant about this really

Re: UK Taxes
 

Welcome to the forum - all the best as you master stealth :thumb:


Listen to James OP

Re: UK Taxes
 

Hi

If you’re looking at net profit of 80-100k then I suggest you get VAT Registered as you have pass the £85,000 threshold for turnover.
Secondly if you are going to have employees then you will need to register with the PAYE scheme and pay The Tax and national insurance on Your employees salary.
If you are working alone I suggest you take a wage under £12,500 which will only have National insurance of around £400-£500 a year to pay on it .
The rest I suggest you take as a dividend after paying the 19% corporation tax.
You will be able to take another 37k without paying anymore Income tax. However when you go past the 50k threshold you will pay the higher rate 40% tax on every £ after £50k

Re: UK Taxes
 

Thank you for your answer guys. Taxes in the UK are insane.

Re: UK Taxes
 

Hello. Guys. Does anyone sells as sole trader? I am searching a program for accounting. Any advice?

Re: UK Taxes
 

if u don;t live in UK, u shouldn't worry about taxes... can even register for VAT and just report 0

Re: UK Taxes
 

Do u actually mean by that... "if the acc being created somewhere else apart from UK country" ? 🤔🤔Please elaborate if u don't mind kindly..🙂🙂🙂

Re: UK Taxes
 

you don't have to pay taxes, they don't have any jurisdiction to recover taxes in another country. However, to register to VAT you need NiNo, so it is useful if you have been before in UK

Re: UK Taxes
 

Read the opening post again, they are creating a UK Limited company, probably with a UK bank account, with a UK registered director drawing a UK salary or dividends on their UK shares.


They will definitely have to answer to HMRC. :rolleyes:


And you are also wrong about VAT, you do not have to be registered for National Insurance to apply.