Corporation tax

eden1969

My partner has his own business he owed 20k in corporation tax of which he paid. Most of his co workers are self employeed for years. Both of them told him he was stupid to pay and that he should have spent all the money? I am onfused by this anyone have any idea what they are talking about? Are they trying to show aloss? If so how would it effect the corpiration tax. I figure if you dont pay on ime you get syuck with a lot of costly late fees?

paddyrg

I would talk to an accountant. Taxes are a feature of life, and sometimes you just need to pay them. I suppose his friends are talking about emptying the company's coffers by spending the cash on assets and fees, meaning there is no profit to tax - however I personally believe in keeping cash on hand in my companies as it means you're more agile to take advantage of opportunities such as forced sales/short-term offers/etc.

Suarez

Wouldn't buying an asset come under capital expenditure therefore not affect the profit?

Mistral001

eden1969 wrote: »

My partner has his own business he owed 20k in corporation tax of which he paid. Most of his co workers are self employeed for years. Both of them told him he was stupid to pay and that he should have spent all the money? I am onfused by this anyone have any idea what they are talking about? Are they trying to show aloss? If so how would it effect the corpiration tax. I figure if you dont pay on ime you get syuck with a lot of costly late fees?

I think this comes under the heading of "pub talk".

Wywth

Mistral001 wrote: »

I think this comes under the heading of "pub talk".

With the OP posting at 1:50am, it certainly would appear so :cool:

Lomast

I personally think if he is running a business that is generating enough profit for that sort of tax bill he would be wise to get some proper tax planning advice from an accountant

Mistral001

Wywth wrote: »

With the OP posting at 1:50am, it certainly would appear so :cool:

I was referring to the self-employed coworkers who say OP's partner is paying too much tax. I suppose I should not have quoted whole of OP's post. Sorry to OP with offense given.