Private business finance and tax planning.
Recorded net is not your actual bank balance, taxable profit or distributable profit. Use estimates for planning only.
Enter odometer readings or direct miles. Exclude personal and non-qualifying journeys. Keep route evidence.
Car/van: 45p per qualifying mile for the first 10,000 in a tax year, 25p thereafter. Motorcycle: 24p/mile. Bicycle: 20p/mile where eligible. Company mileage reimbursement and personal self-employment claims have different conditions. Don't claim fuel/running costs twice.
Forecasts only. Cash net assumes transactions have settled and excludes any opening bank balance, loans and unrecorded liabilities. Dividend availability requires legally distributable accounting reserves.
Never rely on this cash forecast as legal permission to pay a dividend. Check accumulated distributable profits with management accounts after accounting for tax, depreciation, liabilities, earlier losses and previous dividends. Capital allowances can differ from accounting depreciation. Actual equipment purchases must be recorded as transactions; do not count a plan and the purchase twice.
Company Corporation Tax follows its accounting period, which may differ from the personal tax year. The company figures below are illustrative cash-flow reserves, not a Corporation Tax return.
Estimated sole trading profit
Incremental trading Income Tax
Class 4 NI
Dividend tax estimate
Illustration uses England/Wales/Northern Ireland standard non-savings rates and personal allowance. Does not include Scottish salary tax, pension relief, student loans, child benefit charge, losses or other adjustments. Dividend tax depends on other income and allowances. Your company payroll must calculate PAYE and employer NI separately.
Small-profits Corporation Tax can be 19%, with 25% main rate and marginal relief where applicable. A company with one director who is the only employee liable for employer NI is generally ineligible for Employment Allowance. Employer NI can apply to director salary above the relevant threshold. These estimates do not calculate an actual payroll liability or company Corporation Tax.