Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: ftp on December 15, 2008, 03:37:06 pm
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What is it? Can it apply to a windowcleaning buisiness if you are a limited company?
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Rates and Allowances - Corporation Tax
Rates for financial years starting on 1 April
2006
2007 2008 2009
Small Companies Rate* 19% 20%* 21%* 21%*
Small Companies Rate can be claimed by qualifying companies with profits at a rate not exceeding
£300,000
£300,000 £300,000 £300,000
Marginal Small Companies Relief Lower Limit
£300,000
£300,000 £300,000 £300,000
Marginal Small Companies Relief Upper Limit
£1,500,000
£1,500,000 £1,500,000 £1,500,000
Marginal Small Company Relief (MSCR) Fraction
11/400
1/40 7/400 7/400
Main rate of Corporation Tax
30%
30% 28%* 28%*
Special rate for unit trusts and open - ended investment companies
20%
20% 20% 20%
The main rate of Corporation Tax applies when profits (including ring fence profits) are at a rate exceeding £1,500,000, or where there is no claim to another rate, or where another rate does not apply.
Budget 2007 announced a staged increase in the small companies rate of Corporation Tax from 19 per cent to 20 per cent from April 2007, 21 per cent from April 2008 and 22 per cent from April 2009. However, the increase from 21 per cent to 22 per cent from April 2009 has been deferred until April 2010. This deferral was announced by the Chancellor in his November 2008 Pre-Budget Report and will apply from 1 April 2009.
* For companies with ring fence profits the small companies' rate of tax on those profits remains at 19 per cent and the MSCR fraction 11/400 for financial years starting 1 April 2007, 2008 and 2009, and the main rate 30 per cent for financial years starting on 1 April 2008 and 2009. Ring fence profits mean the income and gains from oil extraction activities or oil rights in the UK and UK Continental Shelf.
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My accountant assures me that I pay less tax being limited, but my accountants fees are now £1200 a year instead of £175.
:-\
At £50 per hour, when I go to visit my accountant and he offers me a cuppa - it's like 'no thanks' ::)
Still he seems to know his stuff.
It used to be the case that you could pay yourself a monthly wage, say £104 per week and the rest in dividends. Then you'd get 10,000 tax free and you wouldn't pay the 7% (or whatever it was) of your income in National Contibutions.
Now that's changed, though you still don't pay NI on Dividends.
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Clear as mud Glyn.
Just wondered, because a mate of mine has been landed with a £20,000 bill. He's a limited company in a different trade. It's a tax i only thought applied to massive companies who didn't pay anyway.
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Ltd all the way
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i agree ltd all the way
jerry
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why ltd all the way?
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Back to the question for a thicko like me ;D what is corporate tax? Who has to pay it and why is it different to income tax?
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Clear as mud Glyn.
Just wondered, because a mate of mine has been landed with a £20,000 bill. He's a limited company in a different trade. It's a tax i only thought applied to massive companies who didn't pay anyway.
So he's made over £100,000 profit? he should be able to pay it easy
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Not if he hasn't paid it for years. ;)
He has a complicated system involving his wife as a director, using his company to obtain property even purchasing land from his own garden through his company to build on. It's all stuff i don't understand.