5 Ways to Lower Your Corporation Tax Bill

[@setache3628]

Thank you Tony once again for uploading such a great & useful video. 👍

[@tonydCFO]

Hi Set Ache thank you for your positive comment and support 😊

[@jigerkijeet]

I was not aware of Pension contribution of upto 40k. Thanks for sharing uploading the video.

[@tonydCFO]

Hi Satbeer, we're glad it was helpful!

[@stefgatting]

Hi does paying an increased dividend payment reduce corporation tax ?

[@yeehawongi4920]

I have a question. As a limited company Director, I prefer to pay myself a smaller salary and then take dividends. Using my limited company to boost my pension contributions so that I can take full advantage of the annual pension allowance (up to £40,000). My question is, assuming £0 pension contributions from my PAYE, in order to take full advantage of the annual pension allowance means the limited company would have to pay the full £40,000 to my pension pot, and not the ‘tax relief amount' of £32,000, since the money is from the pre-tax source. Am I right?

[@tonydCFO]

Hi Yeeha - you are correct, Ltd Co contributions are gross (pre-tax)

[@mohammeda4672]

Helping with my tax exam 👍🏼👍🏼

[@tonydCFO]

Hi Mohammed, we're glad to be of help!

[@jamesford7385]

I've tried becoming a member but the activation emails do not come through to my inbox or junk folder?

[@tonydCFO]

Hi James, we have now activated your account for your hotmail e-mail address. You can log in here >>> accountingtaxacademy.com/wp-login.php

[@mark-se6ef]

You can overpay in to your pension if you have not used your full 40k allowance in the last three years, so its possible to pay £120.000 in to your pension, but are you saying I will still pay tax if I still exceed 40k. if that was the case then I would have to pay the divs and claim back tax relief at 20% via personal contribution. ?

[@mdbvs1]

wrong - you could in theory contribute £160k i.e. this tax year and three previous tax years....BUT...when done through the company, it has to be based on profit generated in THIS tax year! Also, in order to benefit from 'carry forward' (using three previous tax years), you need to have had a UK pension of some form in the past! So again, there would be no tax charge above the £40k as you are asking, as long as the company has made sufficient profit and is deemed to be "wholly and exclusively" for the purposes of trade. Has nothing to do with dividends or salary when done through your company.

[@bhaveshchudasama6543]

How much exemption do we have before deducting our corporation tax in uk

[@tonydCFO]

Hi Bhavesh, there is no corporation tax exemption per se. It's really a matter of what tax allowable expenses you can deduct before arriving at the corporation tax liability, assuming your company generates pre-tax profits.

[@jowakeman2718]

How do I check if my contributions are over £40 k ?

[@bhaveshchudasama6543]

Good national insurance end Paye for a director be deducted As In X pence From deep companies profits