If you’re involved in the UK’s film industry, whether as a filmmaker, producer, or part of a production company, the new Independent Film Tax Credit could make a big difference to your finances. The UK government introduced the Independent Film Tax Credit on the 9th of October, 2024. This is designed to support the production of independent British films.

Managing your time and company efficiently as a director can be difficult and time-consuming. However, while travelling for business purposes, it’s easy to overlook the importance of correctly claiming subsistence and travel expenses. To help you navigate these expenses and avoid any potentially expensive misunderstandings, we have prepared this quick guide to understand how directors' subsistence and travel expenses should be managed.

It's crucial for incorporated businesses to have a clear understanding of which expenses are tax-deductible, as this knowledge can help them avoid costly and time-consuming tax enquiries. When it comes to directors' expenses, it's particularly important to differentiate between those that qualify for tax deductions and those that don't. If the company pays for any expenses that are not related to the business, they will be considered as directors' drawings or income by the tax authorities.

Following on from our first back-to-basics tax articles for small companies where we spoke about directors’ loan accounts, I now present the second article regarding Salary vs. Dividend remuneration for company owners.

Deciding how to remunerate yourself as a business owner is a crucial decision. If you hold shares in your company, you have two main ways to pay yourself. These are salary and dividends.  Each option comes with its own set of considerations.

Directors' Loan Accounts are where the financial transactions between a company and its directors are recorded. This account keeps track of any money borrowed or taken by directors from the company and money lent by the directors to the company. It is important to note that these transactions should be recorded to maintain transparency and ensure compliance with the law and tax code.