We are a small company who are keeping our head above water in a tough time, we will make a living this year but things need to improve next year to justify the hours that go into running your own business.
We are finalising our last year accounts, by my calculations we face a £40k corporation tax bill shortly.
I read this and despair, we face 1/4 of the tax bill one of our esteemed MP's family business faces, the only difference is their revenue for the year was £2.1Bn with profit of £65million......
The irony of it is that she is to head up a challenge to big companies who do just the same.....
Funny, I was only yesterday telling my accountant he must be kidding when he told me how much we have to pay:sad_smile: I'd love to know how the ---- they get away with it and we have to pay for it.
I'm amazed change your accountant you should go and get a Mercedes crew cab it's got seats it can carry a ton and it will come off your corporation tax bill
I'm amazed change your accountant you should go and get a Mercedes crew cab it's got seats it can carry a ton and it will come off your corporation tax bill
The £40k is the corporation tax due on the profit we made, it is not the profit that can be spent to eliminate all CT. Surely if we bought a van it would only save £4k of corporation tax even if the whole van cost of £20k could be offset (and I don't think you can offset the full van cost all in the same financial year)? Also we would then have spent £16k on a flash van we didn't need.
We have sacked the first accountant and hope that our new one will be able to work some Magic on my rough calcs, doubt they will be able to get it down to £123 though as per the big boys.
The trouble is these large companies make their tax affairs so complex it's easier to chase small businesses. Not like we can share our profits with our Swedish subsidiary, by the way of royalties. Either way CT or Personal tax they will get the small chaps first...
We pay dividends out of our profits which is why they were left so high, so really a lot of it is only what we would have had to pay in NI and income tax. Would be nice to be getting it down a bit though.
Funny, I was only yesterday telling my accountant he must be kidding when he told me how much we have to pay:sad_smile: I'd love to know how the ---- they get away with it and we have to pay for it.
Well our corporation tax liability is even higher than my rough calculations.
One of the ideas that our accountant came up with was to put a provision for future warranty claims in and offset that figure against our CT liability. Has anyone else done this or looked at this for an option?
It was our accountant that suggested it and it seemed a very good option to us, just wondering what other people thought and what figures they were using. She felt between £300-£500 per job was justifiable.
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