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?
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corporation tax
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corporation tax
"Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain -
Originally posted by scooterscotIf 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?
By the way, are you really making +£300k profit ?Cenedl heb iaith, cenedl heb galon -
Originally posted by BluebirdI 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 ?Comment
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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.
AlanComment
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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.Behold the warranty -- the bold print giveth and the fine print taketh away.Comment
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Originally posted by BluebirdI 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"Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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Originally posted by Nixon WilliamsCT 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"Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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Originally posted by scooterscotMy 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 beforeComment
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Originally posted by King CnvtThat must be terrible. Have you thought of moving offshore and not paying any tax at all?"Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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