Limited Company FAQ's

There are three elements to the statutory residency tests: the ‘automatic overseas tests’, the ‘automatic UK tests’ and the ‘sufficient ties tests’.

Your residency position is worked out using the ‘statutory residency’ tests devised by HMRC.

In working out your tax liability, residency applies to both you personally and your company.

The location of your domicile is important if you are UK resident and not domiciled in the UK and have overseas income.

‘Domicile’ is a legal word generally used to define the place where you have your permanent home. It is therefore used more to define your long-term habitation, as opposed to your residency, which is more short-term.

The UK taxes its residents on their worldwide income and gains, so your ‘tax residence’ is critical in determining how much UK tax you must pay.

Some employee benefits are exempt from tax and not considered benefits in kind. The most common include company mobile phones, pension contributions and ‘trivial’ benefits valued at less than £50.

No. There is a set list of certain benefits or expenses, which are not considered benefits in kind.

The deadline for Class 1A National Insurance payments is 19th July by post, and 22nd July if paying electronically.

The personal impact of a P11d depends on what is itemised. If you have received a benefit in kind, you may have to pay tax on the cash value.