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Corporation Tax vs Personal Tax for Limited Companies #AskAMS
If you have a Limited Company you must pay Corporation tax AND Personal tax, something that is often forgotten by new start-ups.
When you start a Limited Company you will have to pay Corporation Tax (tax on the Company profits), which is 19% of the profit and is payable 9 months after the Company year-end date. People often forget that they also have to pay tax on the income (principally dividends) that they take from the Company. Plus you may have to pay tax on any other income, especially if you are in the Higher Rate Tax bracket. Personal income tax must be paid 31st January (and possibly 31st July) each year.
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