Here are the most frequently asked questions we've received from Limited company contractors in September 2022, with answers from the experts at Orange Genie Accountancy:

How much is Corporation tax?

Currently corporation tax is 19% but this is due to rise to 25% from 1 April 2023 where a company’s profits are in excess of £250,000. If profits remain below £50,000 then the 19% will still apply with a marginal rate on a sliding scale for profits between £50,000 and £250,000.

Can I use my Company Debit or Credit card for personal expenses?

We always advise that it is best practice to separate your personal expenses from those of your business. You should extract a salary and dividends in such a way that you are then able to cover all personal expenditure from your persona income. Any personal costs that slip through on a company card will either need to be treated as an additional dividend or may attract a P11D charge for being a personal expense.

What is the most tax efficient salary if I want to minimise tax and NI?

Prior to July 2022, if you wanted to pay no tax or NI, then your salary should have been £9,100 or less. With the increased in the NI thresholds from July 2022, this has now risen to £11,908 per annum.