Guide to Benefits in kind
The Accounting Studio guide to Benefits in kind Benefits in Kind (BIK) are when you, as an employee or director, receive a something of value from a company that is not in cash. They are sometimes called perks or just benefits. There is value in these benefits in kind; they are worth something. Had you […]
Guide to corporation tax
The Accounting Studio guide to Corporation Tax Corporation tax is a tax paid by companies on its profits made by the company How is corporation tax calculated? Corporation tax takes the profits made by the business (your income and sales, less your expenses, purchases, wages etc). The profits are then adjusted according to the rules […]
Guide to Dividend Tax
The Accounting Studio guide to Dividend Tax Money you receive from your company in the form of dividends is subject to income tax. Whilst we use the term “dividend tax”, there is no such thing – it is actually income tax, but taxed at a special rate. Dividends are paid from your company’s profits after […]
Guide to Income Tax
The Accounting Studio guide to Income Tax Income tax is paid by individuals on all their income however it may arise. This includes salary, dividends, interest, rental income, benefits in kind or profits from a self employed business (note: not a limited company – this has its own corporate tax return). The income tax year […]
Guide to National Insurance Contributions
The Accounting Studio guide to National Insurance Individuals pay national insurance in order to qualify for a range of state benefits. These benefits include access to state pension, employment support and maternity pay. The level that national insurance kicks in is usually lower than that for income tax, so it is often one of the […]
Guide to PAYE and Payroll
The Accounting Studio guide to PAYE and Payroll PAYE (Pay as you earn) is a system of collecting income tax and national insurance from employees through their wages and salary to avoid the majority of people needing to file tax returns in the UK. Employees receive their wages after income tax and national insurance have […]
Guide to VAT
The Accounting Studio guide to VAT VAT is essentially a sales tax. Every time a business sells goods or servics, VAT is added to that sale. VAT is, in our opinion, amongst the most complex of taxes. It has a huge scope with many exceptions and it is beyond the scope of this guide to […]
