Welcome to the official 1st Formations RU-vid channel. As the UK’s leading company formation agents, we’re sharing our knowledge and experience in company matters.
Our company experts explain areas of company formation and company law in easy-to-understand videos, providing you with the confidence to make the right decisions for your company.
We also share tips and advice on a range of topics including finance and tax, directors and shareholders, and general business topics.
• If you have any questions, please leave a comment. • Interested in our services? Visit our website at www.1stformations.co.uk • Visit our blog for more information on limited companies in the UK: www.1stformations.co.uk/blog/
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Great video. I do have a question, are any expenses incurred by the directors to attend the board meetings considered a business expense? For example, if the company decides to hold yearly meetings in Valencia Spain could the cost to attend be paid by the company and deducted as a business expense?
Interesting information. What happens if I were to pay myself £1 per year and take the rest as a dividend? As non-resident in the UK would I be liable for UK tax?
In relation to deemed bonus or dividends, this should be decided carefully by looking at personal tax side of directors. First of all if company pay tax there is possibility that in future director loan account can be converted into credit and at that time tax will be reclaimed but for deemed dividends or bonus directors will need to pay personal tax which is not recoverable. Further if directors is at higher rate band then bonus will be taxed at 40% which is higher than s455 tax and deemed dividends will be taxed at 33.75% which is same as s455 tax rate. However, directors can choose best option according to their own situations or plans. They can discussed with their accountants.
Hi 1st Formation, Informative video, i would like to add some points which are as below, -S455 tax in refundable and it will be repaying by HMRC on the amount which has been paid back to company by directors , to claim a refund directors don’t need to pay full loan amount back to company. Further, tax will be refund at the same rate on which tax was paid. For example if company pay tax @33.75% today and very next day rate gets changed either decreased or increased and directors pay money back on very next day when tax was paid, company will receive refund at 33.75%. In relation to interest on DLA, although it is not repayable and will be considered income for company for tax purpose, but interest starts accruing when dla become overdrawn and it should be calculated on daily basis until overdrawn changed to credited dla. Further directors need to pay interest in cash unless there is a formal agreement between directors and company to make interest part of dla. If any of one met then there won’t be any personal tax to pay.
Hi 1st formation, Good channel. I would like to give some suggestions, also would like to make some corrections. As you know that VAT threshold for mandatory registration has been changed. Being a UK practice accountant I know it was £85k when you uploaded this video but i think it will be good if you can add disclaimer that rate/threshold might be changed when you are watching this video. In relation to the accounts submission, first accounts submission period is 21 months from the registration date which is correct but from second set of accounts companies need to submit the accounts within 9 months from the yearend date and if there is any corporation tax liability then that liability needs to be paid to HMRC within 9 months and 1 day from the yearend date. However, CT submission period is 12 months as you mentioned.😊
Yes, you should inform HMRC. We'd recommend calling them on 0300 200 3410 or +44 151 268 0571 - www.gov.uk/government/organisations/hm-revenue-customs/contact/corporation-tax-enquiries
Hi I am UK resident with With overseas citizenship i have investment in my domiciled country what kind of taxes i have to pay to hmrc if i bring that investment to uk. Because i have to pay taxes to domiciled country also That mean i have to pay 2 time taxes or what please enlighten me. Thanks
I do that all the time. Me, myself and I, in one room for better hearings, but not necessary. Offten, we communicate on different wavelenghts, and from different places. Depends on where, all of us, are at that moment, spiritually!
These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?
I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.
This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, pur country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolio
@@hasede-lg9hj How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Thanks for sharing such valuable information! A bit off-topic, but I wanted to ask: My OKX wallet holds some USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). How can I transfer them to Binance?
The information in this vidoe is outdated. For now you can't make registration online, because you have to have National insurance number to finish registration in government gateway. HMRC support said "you wont be able to make an account you will need to print off an SA1 form and fill it in and send it to us in the post to register"
I really appreciate your efforts! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?
Is it a good idea to give login details to accountants to file accounts and tax return for web filing ? If not, then what information to give, so that they can tax file on behalf of your company ?
Nothing in the video says anything about *Holiday Pay* 🤔 so, if we need to pay staff, how on earth can we pay them the legal *Holiday Pay* they are allowed to have by UK laws?
Dear 1st Formations Team, I recently purchased the Privacy Package from your website and would like to confirm whether my residency in Palestine could be an obstacle or cause for any issues with address verification. In case my application is rejected, will I be eligible for a refund?
Thank you for your comment. Our Compliance Team will contact you after reviewing your order, to confirm if we can or cannot proceed. If we cannot proceed, you will, of course, receive a full refund.
You may find the following blog posts helpful. They contain more details of the tax you pay through a company, including examples of different salary and dividend combinations. Most tax-efficient director’s salary and dividends for 2024-25 www.1stformations.co.uk/blog/tax-efficient-directors-salary-and-dividends/ The most tax-efficient way to take money from a limited company www.1stformations.co.uk/blog/most-tax-efficient-way-to-pay-myself-from-my-limited-company/
I am the owner of a limited company and there are 4 directors including me. All of us are non-resident director of the company. And we take salary on a project basis. Do we have to pay tax on salary? or we just need to pay corporation tax based on profit we make?
Thank you for your comment and apologies for the delay in our response. You may be liable to UK tax on your salary earnings as a non-resident director but it depends on various factors. I'm afraid we cannot offer tax advice - we recommend seeking assistance from an accountant.
Great video! I have a quick question. I’m the director of a limited company, but I’m not currently paying myself a salary or dividends, as the company isn’t generating revenue yet. Am I still required to register for self-assessment as a company director?
Thank you for this. Can I choose not to pay myself any compensation as a Director, and take all the money through dividends? (I cover all these roles alone)
Thank you for your comment and please accept our apologies for the delay in our response. Yes, you can certainly take all of your income from your company as dividend payments rather than paying yourself a director's salary. If you choose to do so, you must report your dividend income to HMRC on a Self Assessment tax return at the end of the tax year.
Great summary. The only caveat I'd add to this is in relation to some benefits - for example, the definition changes when claiming Universal Credit. For the purposes of income, you're considered "self employed" by DWP for ANY business income as a sole director, minus your PAYE (which is considered a business expense and gets reported to DWP separately) and business expenses.
