Julie
sunglasses removed !
- Joined
- Jun 24, 2008
- Messages
- 416
The accounts available by law are absolutely minimal. And there is no way of knowing what the Directors earn in dividends. VAT registration or not is a clear indicator of how much the company bills. The tax advantages of one man limited companies are going to change significantly in April 2016. The main tax breaks will be gone. Corporation tax isn't a personal tax but it is taken out of profits so has an impact on earnings and the accounting costs of a limited company are quite high.
And the upcoming changes in the hidden employment regulations could cause serious problems for people who run their own businesses but effectively work on contract to one company.
Accounting costs for these type of companies would be pretty minimal compared to turnover. If they are paying over £5k then I would be surprised. Corporation tax is a lot lower than Income Tax hence they pay themselves small salaries, then a large Dividend.
With three clicks of my iPad, I got 3 presenters Dividends and I am no computer expert !