Company Tax Help Please?

micky007

Hi,

I'm a new company and was just wondering if someone can tell me a little bit about tax.

What’s the % of Tax the Tax man will take.

I know the Tax man charges the % of Tax only on the Profit does the Profit include the payments of staff or not? For example I have £9,000 profit but i have not yet paid the staff so would the Tax man Tax me on the £9,000 or on the End Profit once staff have been paid ?

What other sort of Tax would i need to pay as i was told there’s another sort of Tax i would have to pay because of staff ?

Would anyone be able to give me advice on this and future information i may need to help me out if possible please?

Thank you very much.

johnllew

I think you would do best to engage an accountant. If you are operating through a limited company, there are a lot of things that need to be done properly and your questions suggest a very limited knowledge.

Staff remuneration is an allowable deduction in determining the profit of a company. The other tax you refer to may well be National Insurance contributions? As I say, I think you need professional advice.

micky007

johnllew wrote: »

I think you would do best to engage an accountant. If you are operating through a limited company, there are a lot of things that need to be done properly and your questions suggest a very limited knowledge.

Staff remuneration is an allowable deduction in determining the profit of a company. The other tax you refer to may well be National Insurance contributions? As I say, I think you need professional advice.

Hi,

But i can not afford an Accountant thats why im trying to look for some free advice that could help me.

Thanks for your reply and yes that was the other tax i was trying to think of.

Thank you.

lesley1960

You pay corporation tax on the company's nett profit , salaries /wages inv NI are deductable .

You really need an accountant , you say you cannnot afford one?, have you made enquiries in what they are will charge ? ( their fees are tax deductable too ) . Depending on how much paperwork you do this will affect how much an accountant will charge .

I am assuming you are talking about a ltd company here?

You say you have made £9k of profit , is this for the year? and you havent paid staff yet?

micky007

lesley1960 wrote: »

You pay corporation tax on the company's nett profit , salaries /wages inv NI are deductable .

Hi,

Yes im a Ltd company and the £9k was just an example.

So when you say

lesley1960 wrote: »

You pay corporation tax on the company's nett profit , salaries /wages inv NI are deductable .

So i can pay the staff their wages and that comes out the proffit and then what ever is left after i pay the staff i have to give a percentage of that to the tax man correct?

Thanks

Merlin_Accounts

Hi

You really should engage an accountant unless you are fully au fait with Companies Acts disclosure requirements and know how to present Limited Company accounts that comply with the law. The cost of getting it wrong could well outweigh the cost of an accountant.

Reading your post it also seems to suggest you do not know anything about operating PAYE for staff remuneration - not good, nor how to calculate tax for the company.

Do you also understand the rules for corporation tax computations and know how to fill in a corporation tax return? Do you know what to do about employers annual returns?

Finally, I have to wonder why you are a limited company, particularly as you are making so little and went into it without it would seem taking any professional advice.