Limited company and Corporation Tax
Director-specific decisions: dividend timing, spouse salaries, goodwill on acquisitions, intercompany loans, transfer pricing documentation, amending a CT600 and the interest that accrues when Corporation Tax is paid late. These guides are for people running a company, not a sole trade.
22 guides in this topic.
Mileage Claims for Limited Company Directors: AMAP vs Salary
If you use your personal car for business travel, claiming mileage through your limited company is one of the most tax-efficient strategies available. Using the HMRC Approved Mileage Allowance Payment (AMAP) rate means neither you nor your company pays tax or National Insurance on those payments. Here's exactly how it works and why it beats taking extra salary.
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Adjusted Profit Calculations: Mistakes That Cost Directors Thousands
Getting your adjusted profit calculation wrong for Corporation Tax doesn't just mean paying the wrong amount — it usually means overpaying. Here are the most common errors limited company directors make and exactly how to fix them.
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Statutory Work in Progress: What Limited Companies Must Know
If your limited company has incomplete projects at your year-end, you may be required to include their value on your balance sheet as work in progress. Getting this right affects both your corporation tax bill and the accuracy of your statutory accounts. Here is what every limited company director needs to understand.
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Multiple Business Activities in Your Limited Company: Splitting Income & Costs
Running more than one type of business through your limited company can create real headaches at tax time. Understanding how to correctly apportion income and expenses between activities protects you from HMRC scrutiny and ensures you claim exactly what you're entitled to. Here's what directors need to know.
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Diverted Profits Tax: Is HMRC Looking at Your Company?
Diverted Profits Tax targets companies that shift profits away from the UK using artificial arrangements. While DPT was originally aimed at multinationals, growing scrutiny means UK-connected limited companies with cross-border structures need to understand the rules. Here is what directors need to know in 2026.
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Spouse Salary Planning: Cut Tax and NI in Your Limited Company
Paying your spouse or civil partner a salary through your limited company is one of the most effective and legitimate ways to reduce your overall tax bill. Done correctly, it spreads income across two personal allowances and minimises National Insurance costs. This guide explains exactly how to structure it for the 2026/27 tax year.
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Statutory Interest on Late Corporation Tax: Calculate It First
If your limited company pays corporation tax late, HMRC will charge statutory interest from the day payment was due. Understanding how this interest is calculated means you can estimate the damage before HMRC sends you a bill — and make informed decisions about when and how much to pay.
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Dissolution Relief: Cut CGT When Closing Your Limited Company
Closing your limited company doesn't have to mean a hefty tax bill. Dissolution Relief (formerly known as Extra-Statutory Concession C16) lets eligible directors extract final company assets at capital gains tax rates rather than income tax rates. Here's how to use it correctly and keep more of what you've built.
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How to Amend Your CT600 After Filing: A Director's Guide
Made a mistake on your Corporation Tax return? You have 12 months from the filing deadline to correct it. This guide walks you through exactly when and how to amend your CT600, and what to do if you miss the window.
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Bridging Loans & Interest Relief: Getting It Right on Your CT600
Claiming interest relief on bridging loans through your limited company can be highly tax-efficient — but only if the borrowing is genuinely for business purposes. Directors who blur the line between personal and company borrowing risk losing the deduction entirely and triggering additional tax charges. Here is what you need to know.
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Corporate Gift Relief: Tax Deductions on Client Gifts Under £50
Giving clients gifts can strengthen business relationships, but only certain gifts qualify for tax relief. As a limited company director, understanding HMRC's strict rules around the £50 threshold can save you money and keep you compliant. Here's exactly what qualifies and how to claim it correctly.
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Travel & Subsistence Claims: What UK Directors & Staff Can Claim
If your limited company employs directors or staff, understanding HMRC's travel and subsistence rules can save significant tax. This guide explains exactly what qualifies as a tax-free reimbursement, what records you need to keep, and the common mistakes that trigger HMRC scrutiny.
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Interest Relief Restrictions: A Guide for Growing UK Companies
As your limited company grows and takes on more debt financing, HMRC's Corporate Interest Restriction rules can limit how much interest you can deduct against your profits. Understanding the thresholds and calculations could save your company thousands in unexpected tax bills. Here's what directors need to know in 2026.
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Transfer Pricing Rules for UK Companies: What Directors Must Know
If your limited company transacts with related parties — such as a parent company, subsidiary, or connected individual — HMRC's transfer pricing rules may apply. Getting this wrong can lead to tax adjustments, penalties, and costly enquiries. This guide explains the rules, who they affect, and what documentation you need.
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Timing Your Dividend Payments: Cut Tax Bills the Smart Way
Paying yourself dividends at the right time can make a significant difference to your overall tax bill as a limited company director. This guide explains how to use the tax year, allowances, and corporation tax rules to your advantage. Get it right and you could keep thousands more in your pocket each year.
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Goodwill Amortisation: Why It's Not Tax Deductible in the UK
If your limited company has goodwill on its balance sheet, you might assume amortising it reduces your tax bill. In most cases, it doesn't — and understanding why can save you from a costly planning mistake. Here's what UK company directors need to know.
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Statutory Interest on Late Corporation Tax: Calculate & Cut Your Bill
Missing your corporation tax payment deadline triggers statutory interest charges that can quietly inflate your tax bill. This guide explains exactly how HMRC calculates late payment interest, what rates apply from April 2025, and the practical steps limited company directors can take to avoid or reduce the charge.
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Related Party Transactions: Document Transfer Pricing to Beat HMRC
If your limited company transacts with connected parties — directors, shareholders, or related businesses — HMRC expects those deals to reflect arm's length commercial terms. Poor documentation is one of the fastest routes to a tax inquiry. Here is how to get it right.
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Goodwill Amortisation: Why HMRC May Deny Your Corp Tax Deduction
If your limited company has goodwill on its balance sheet, you may be expecting a corporation tax deduction as it amortises. But HMRC's rules are strict, and many companies find their deduction is denied entirely. Here's what you need to know before filing.
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Intercompany Loans: How to Document Them Before HMRC Comes Knocking
HMRC is increasingly scrutinising related party transactions, particularly loans between connected companies or between a director and their limited company. Getting the documentation wrong can trigger tax adjustments, penalties, and unexpected Corporation Tax bills. Here is what you need to know to stay compliant.
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Goodwill Amortisation: Claim Corporation Tax Relief on Acquisitions
When your limited company acquires a business, the goodwill you pay for can qualify for valuable corporation tax relief. Understanding the rules around intangible fixed assets and goodwill amortisation could significantly reduce your tax bill. Here is what company directors need to know.
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Bridging Loans & Interest Relief for UK Property Developers
If your limited company uses bridging finance to fund property development, the interest costs can be a significant overhead. Understanding exactly how and when to claim tax relief on that interest could meaningfully reduce your Corporation Tax bill. This guide explains the rules, the pitfalls, and the practical steps to get it right.
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