Corporation Tax for new company

mike1976_2

Dear all,

I am coming to my year end and wondered if I was due to pay Corporation Tax as ...

I invested c.£30k in the set up of the business. Am I right in thinking that I can claim this money back from the business before I pay Corporation Tax?

Thanks
MJ

Savvy_Sue

Your accountant is really the best person to ask this question. There is bound to be an 'it depends' in the answer!

motorguy

mike1976 wrote:

Dear all,

I am coming to my year end and wondered if I was due to pay Corporation Tax as ...

I invested c.£30k in the set up of the business. Am I right in thinking that I can claim this money back from the business before I pay Corporation Tax?

Thanks
MJ

We're in a similar boat, however the money we have used as setup, our accountant is treating it as if we have 'leant' the business the money, thus the business will pay us back at year end, before tax...

mike1976_2

Thanks Paul

So in effect, I could claim back the £30k first before Corp Tax is paid?

observer_2

mike1976 wrote:

Thanks Paul

So in effect, I could claim back the £30k first before Corp Tax is paid?

If funds were put in as a loan then yes, take out tax free. Advantage of putting in funds as a loan is that you can take them out with no tax. Disadvatage is they don't count as an asset. Depends on how it has been done really.