PDA

View Full Version : corporation tax



scooterscot
12th June 2007, 11:18
If you thought yourself or rather your company were approaching a turnover of the 30% taxable bracket of CT, would you avoid the work? Or is it only 30% on profits beyond the 300K mark?

Bluebird
12th June 2007, 11:51
If you thought yourself or rather your company were approaching a turnover of the 30% taxable bracket of CT, would you avoid the work? Or is it only 30% on profits beyond the 300K mark?

I believe that the 30% rate will apply to all of your profit, because the 20% is "relief for small businesses" - by moving over 300k you are no longer a small business.

By the way, are you really making +£300k profit ?

Old Greg
12th June 2007, 11:54
I believe that the 30% rate will apply to all of your profit, because the 20% is "relief for small businesses" - by moving over 300k you are no longer a small business.

By the way, are you really making +£300k profit ?
Wish I was in this position. The trick would be to increase your expenditure to reduce your profit back down to 299,999.

Nixon Williams
12th June 2007, 11:56
CT is paid on profits not the turnover.

The full rate of 30% only applies if the profit is above £1.5 million, between £300K and £1.5Million their is effectively a sliding scale between 20% & 30%.

If there are associated companies (common ownership etc) then the above values would be reduced, depending how many associated companies there are.

I hope this helps.

Alan

Sysman
12th June 2007, 12:01
Hindsight is a wonderful thing. I did once do a go slow to avoid a higher tax bracket and later on wished I hadn't. It would have been better plough the extra into something that would provide a return in the future.

What I did the following year was to do some training and attend a couple of expensive conferences. Both paid off in terms of contacts for future work.

scooterscot
12th June 2007, 12:05
I believe that the 30% rate will apply to all of your profit, because the 20% is "relief for small businesses" - by moving over 300k you are no longer a small business.

By the way, are you really making +£300k profit ?


My finacial year ends this Sep if I keep going the way I'm going I might! one of my contracts is a % of the clients product sale price, which only occurs everytime I need to update my model, a weeks worth of sweat for £££'s

I think a month off work is the end answer, but I've never had to force it before :D

scooterscot
12th June 2007, 12:05
CT is paid on profits not the turnover.

The full rate of 30% only applies if the profit is above £1.5 million, between £300K and £1.5Million their is effectively a sliding scale between 20% & 30%.

If there are associated companies (common ownership etc) then the above values would be reduced, depending how many associated companies there are.

I hope this helps.

Alan

Thank you...

King Cnvt
12th June 2007, 12:07
My finacial year ends this Sep if I keep going the way I'm going I might! one of my contracts is a % of the clients product sale price, which only occurs everytime I need to update my model, a weeks worth of sweat for £££'s

I think a month off work is the end answer, but I've never had to force it before :D

That must be terrible. Have you thought of moving offshore and not paying any tax at all?

scooterscot
12th June 2007, 12:10
That must be terrible. Have you thought of moving offshore and not paying any tax at all?

The father in law in the channel islands is aye trying to tempt me! :eek: yes like you say, terrible.