R01 Reminders

Question 1

Sole Traders Info & Tax

Answer 1

Personally liable for debts
Tax levied on the owner
Income Tax twice a year
CGT
NIC - Class 2 & 4 (if above threshold)
If an Employer then they pay secondary class 1 NIC’s

Question 2

Partnerships Info & Tax

Answer 2

Only pay tax on share of profits (own allowances)
Cannot be held liable for other partner’s tax
This share is used for NIC 2 & 4
Unlimited liability for trade debts

Question 3

LLP

Answer 3

Separate Legal Persons
Not individually liable for debts (no liability to claims)
Partners are still self-employed and pay tax & NIC’s on their share of profits
No Corporation tax

Question 4

Ltd

Answer 4

Separate Legal Identity
No individual liability for debts - the company liable up to limit of own assets
Need to be registered with the Registrar of Companies
Yearly public accounts to Companies House
Pay Corporation Tax
Class 1 NIC on owners
Can take Dividends

Question 5

PLC

Answer 5

Public Limited Company on Stock Exchange
At least 2 Directors & 2 Shareholders
Shares of at least £50k