I received a surprise this morning with a bill for corporation tax. I am working fully inside IR35, and had assumed that since all earned income must be paid as PAYE, there would be zero company profits, and therefore no corporation tax to pay.
it looks like the accountant has counted outstanding invoices and work in hand as assets of the company, and therefore I have to pay tax on money not yet received? It means I have to pay an additional 21% tax on Money that is then going to be taxed again as salary!
Surely this can't be right can it?
it looks like the accountant has counted outstanding invoices and work in hand as assets of the company, and therefore I have to pay tax on money not yet received? It means I have to pay an additional 21% tax on Money that is then going to be taxed again as salary!
Surely this can't be right can it?
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