Under the new PS rules there will be no 5% expense allowance for running your company.
However, if caught by this, you are still running a Ltd company and you will still have legitimate business expenses (insurance, accountancy, filing fees, etc.). Presumably you will still be able to (and it would be advantageous to) pay for these through the LtdCo using retained profit from previous years?
(And in that case, in the first year at least, would this potentially result in a trading loss which you can then carry back to get a small corporation tax refund?)
However, if caught by this, you are still running a Ltd company and you will still have legitimate business expenses (insurance, accountancy, filing fees, etc.). Presumably you will still be able to (and it would be advantageous to) pay for these through the LtdCo using retained profit from previous years?
(And in that case, in the first year at least, would this potentially result in a trading loss which you can then carry back to get a small corporation tax refund?)
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