Commentary

B9.132 Incorporation—table of key tax issues

Business tax
Business tax | Commentary

B9.132 Incorporation—table of key tax issues

Business tax | Commentary

B9.132 Incorporation—table of key tax issues

This is a comparison table of key tax issues

NotesSole traderGeneral
P'ship
Ltd CoLtd
P'ship
LLP
Individuals taxed on business profitsX
Reserves build up net of low rate of taxXXXX
Class 4 NICs as distinct from Class 1 NICs1X
Only single tier CGT charges2X
Pensionable earningsX
Tax relief for personal insurances3XXXX
Simple drawings (no PAYE, P11Ds or tax on loans)X
Tax relief for business use of car4

Notes:

  1.  

    (1)     Remuneration paid by a company is subject to Class 1 and Employers NICs. There are no NICs on dividends paid by a

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