@thelondonaccountant: After that mango catch I couldn’t refilm that part - so thass is staying in. Save this for when you speak to an accountant - as sometimes it may seem daunting as to why this structure is taken. The reason why you run payroll from your Ltd company is because paying yourself a salary reduces your profits and therefore your corporation tax bill. A little like when you pay for equipment or supplies (it’s basically a business expense). The £12,570 amount is your personal allowance - so it’s tax free from a personal tax standpoint. You will have to pay employers NI on that amount at around £95 a month - this is a tax paid by a company that employees people. However the savings you make in corporation tax outweigh this payroll tax. As £12,570 may not be enough to live off - Ltd company owners can also take dividends (the director must also be a shareholder). Dividends taken at £37,700 are taxed at the basic rate of 10.75%. Anything taken above that amount will be taxed at 35.75% (higher) or 39.75% (additional). All the above assumes your Ltd company is your sole income source and - if you have PAYE income or other earnings you may want to flex how you pay yourself. That’s why it’s important to speak to an accountant as not one size fits all! @emmagrede photo credit 🙌 Class over #business #tax #hmrc #gov #money

The London Accountant

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Monday 25 May 2026 15:48:57 GMT