Tax Advice for Freelance Contractors in Scotland

Q. Do you complete my Self-Assessment Income Tax Return on my behalf?

A. Yes we do, and this is included in our monthly fixed fee as regards any income / expenses declaration which derives from your career as a contractor. We reserve the right to charge an additional fee should you have multiple sources of income and expenses.

Q. How do I work out how much I owe for VAT and other tax liabilities?

A. We will calculate these at the end of each relevant calendar period and advise you of the liability and when and where it has to be paid. All you have to do is authorise the payment from your company bank account.

Q. What is Corporation Tax?

A. Corporation Tax is a charge on the profit made by your Company. So, if your company’s income is greater than its expenses (including your salary) then Corporation Tax is paid on the company’s profit (even if you withdraw this as dividends).

Q. What is the Corporation Tax rate?

The small companies’ tax rate (for company profits of £300k or less) is 20% (2015/16 tax year).