Business Structure
Choosing between sole trader, partnership, LLP, and limited company structures for tax efficiency.
What is a company formation and what are the tax implications?
Company Formation and its Tax Implications What is a Company Formation? What the law says: Under the Companies Act 2006, company formation is the process...
17 March 2026
How does goodwill get taxed on incorporation of a business?
Taxation of Goodwill on Incorporation of a Business The taxation of goodwill on incorporation involves two distinct tax charges: Capital Gains Tax (CGT)...
17 March 2026
What is the salaried member rules for LLPs?
Salaried Member Rules for LLPs What the Law Says Overview & Scope The Salaried Member Rules ("SMR") are found in sections 863A–863G of ITTOIA 2005 (for...
17 March 2026
How are partnership profits taxed?
Here is a comprehensive answer on how partnership profits are taxed in the UK. --- How Are Partnership Profits Taxed? What the law says The "transparency"...
17 March 2026
What is a partnership for tax purposes?
What is a Partnership for Tax Purposes? What the law says The statutory definition of a partnership, drawn from the Partnership Act 1890 and applied for...
17 March 2026
What happens if I owe money to my company on a director's loan?
Here is a comprehensive answer to your question about owing money to your company on a director's loan. --- What the Law Says 1. The S455 Corporation Tax...
17 March 2026
What is a director's loan account?
A director's loan account (sometimes called a director's current account) is an accounting record maintained by a company that tracks all financial...
17 March 2026
How do I extract profits from a limited company tax efficiently?
Extracting Profits from a Limited Company Tax-Efficiently I must be transparent with you upfront: the retrieved sources do not contain a comprehensive...
17 March 2026
What is the optimal salary for a director of a small company?
Optimal Salary for a Director of a Small Company Important caveat: The available source materials do not contain any HMRC guidance or legislation that...
17 March 2026
What are the tax differences between a sole trader and a limited company?
Based on the sources gathered, here is a comprehensive comparison of the key tax differences between a sole trader and a limited company. --- Tax...
17 March 2026
What is the annual earnings period for directors national insurance?
Directors' National Insurance: Annual Earnings Period What the law says Under Regulation 8 of the Social Security (Contributions) Regulations 2001 (SI...
11 March 2026
How do directors pay national insurance?
How Directors Pay National Insurance What the law says Directors are treated as employed earners for NIC purposes. A directorship is an "office" and...
11 March 2026
What is incorporation relief when transferring a business to a company?
I now have sufficient information to provide a comprehensive answer. Here is the full explanation: --- Incorporation Relief (TCGA 1992, s.162) What the...
11 March 2026