Here are the most frequently asked questions we've received from Limited company contractors in June 2021, with answers from the experts at Orange Genie Accountancy:

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What is Class 1A NIC?

Class 1A NIC is payable on all benefits in kind given to you or your employees during any tax year. Benefits such as company cars, overdrawn loan accounts and gym membership will all attract Class 1A NIC.

These benefits are reported on your P11d and any associated NIC is due for payment by 22 July each year following the end of the previous tax year.

How do I repay my bounce back loan?

You are able to tailor your payments to suit your individual circumstances and choose to make no payments on your loan until 18 months after you originally took the loan out. You can make interest only payments for 6 months, pause your repayments at any time and extend the length of your loan from 6 years to a maximum of 10 years.

Can I reduce my payment on account for self-assessment that is due in July?

Possibly. If your income is substantially different in 20/21 from that of 19/20 and you know you will have less tax to pay then you should be able to reduce your payment on account. The best way to check this and avoid any mistakes is to file your 20/21 tax return as soon as possible before 31 July. That way you can be sure of your liability and make the appropriate claim.