With the change from one tax year to the next comes a range of different tax rates, allowances and thresholds that can change the way in which you manage your taxes. A company director is typically paid a salary from the limited company, which is calculated very specifically to maximise tax-efficiency. Should you therefore increase or decrease your salary in this new tax year?

It is natural for friends and family to want the best for you, and quite often they take the opportunity to give advice based on their own circumstances. Once upon a time incorporation was, more often than not, the sensible option for a business once it's profits reached a certain level. However, in recent years changes to tax legislation means that many of the tax breaks no longer exist. Are there any remaining related tax benefits?

limited-company-best-to-save-tax As all contractors will now be aware, from April 2016, dividends will be taxed differently, and the limited company "owner director" will highly likely pay more tax than they do currently. The question many contractors and freelancers are asking is, "does it still pay to be limited, taking everything into account?".

contractors-cash-reserves-act-now Along with the changes to contractor dividend tax rules, that come into force from April 2016, the government are making plans to restrict any loopholes that could be used to avoid this extra tax, by targeting Member's Voluntary Liquidations (MVL's). Contractors need to be aware of the new rules to MVL's and there's a small window of opportunity to act before April 2016.

new-dividend-rules-will-affect-contractor-tax The July 2015 Budget announced changes to the tax rules on dividends that will inevitably affect most contractors and freelancers that trade using a limited company. It is important to understand the current contractor dividend tax system in detail, the changes that are on the horizon, as well as consider the options available that may help ease the new tax position.

salary-versus-dividends One key question asked by contractors and freelancers when trading as a limited company, is, "how is best to extract income from the company?". It is important to understand the differences between drawing money as salary and drawing money as dividends, and the tax treatment of each.