A limited company in UK?

Question

thinking about starting a limited company in UK, mostly for small business (ebay etc), question is what is the limit on the income that is tax free?
Regards

Answer 1

You have a personal allowance which means the first £5,000 odd of your earnings are tax free.

But a limited company does not get a personal allowance so all its earnings (after deducting allowable expenses) is subject to corporation tax. When you want to draw the money out of the company there may be a further tax charge depending on how you arrange this.