Corporation Tax, glad to be doing our bit for the country.... | Page 2 | on ElectriciansForums

Discuss Corporation Tax, glad to be doing our bit for the country.... in the Green Lounge (Access Only) area at ElectriciansForums.net

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 ÂŁ300-ÂŁ500 per job was justifiable.
I'd think that'd be hard to justify at those figures. I doubt you should really even be accounting for the costs of one call out per customer, as I'd certainly be hoping that the average was far less than one call out per customer.

something more like ÂŁ75-100 per customer would seem a bit more realistic and less likely to be challenged to me, unless you also warranty the equipment yourself on top of the manufacturers warranty.
 
Hard to know what to go for, but we are a small company where both directors are on the tools at times like these, we are expensive ;-).

Scaffolding and a 1 in 3 warranty claim over 5 years could see us at the lower end of what she suggested.
 
most repair work is doable off a scaf tower if you have one.

but yes, I'd not factored that cost in, so maybe a bit more, but ÂŁ300-500 per job seems exceptionally high to me, and I'd worry about being able to justify it if HMRC queries it. If you can justify it, then fair enough.
 
Be interested to know what others go for as a provision in the accounts. No doubt HMRC will challenge one of us. I have just put in 2% of cost of sales to cover future warranty claims.
 
There's no issue with CT, if you pay it that way you save the NIC when you take it out as dividends, so you're 13.8% personally better off :)

And yes we put a small % in as liability for future warranty claims.
 
There's no issue with CT, if you pay it that way you save the NIC when you take it out as dividends, so you're 13.8% personally better off :)

And yes we put a small % in as liability for future warranty claims.

Yes, it is essentially deferred income tax/NI so we are not too aggrieved by paying it, just a big lump some (that we saved for), and as you say there is a benefit to doing it this way.
 

Reply to Corporation Tax, glad to be doing our bit for the country.... in the Green Lounge (Access Only) area at ElectriciansForums.net

News and Offers from Sponsors

  • Article
Join us at electronica 2024 in Munich! Since 1964, electronica has been the premier event for technology enthusiasts and industry professionals...
    • Like
Replies
0
Views
369
  • Sticky
  • Article
Good to know thanks, one can never have enough places to source parts from!
Replies
4
Views
931
  • Article
OFFICIAL SPONSORS These Official Forum Sponsors May Provide Discounts to Regular Forum Members - If you would like to sponsor us then...
Replies
0
Views
1K

OFFICIAL SPONSORS

Electrical Goods - Electrical Tools - Brand Names Electrician Courses Green Electrical Goods PCB Way Electrical Goods - Electrical Tools - Brand Names Pushfit Wire Connectors Electric Underfloor Heating Electrician Courses
These Official Forum Sponsors May Provide Discounts to Regular Forum Members - If you would like to sponsor us then CLICK HERE and post a thread with who you are, and we'll send you some stats etc

YOUR Unread Posts

This website was designed, optimised and is hosted by untold.media Operating under the name Untold Media since 2001.
Back
Top