corporation tax

Pudney · 25 Oct 2012 at 15:25

No, you need to complete a form CT600, this is backed up by your accounts and tax computation.

What did he ask you to email over?

Oh, and if you haven't filed your tax return I take it you haven't paid your tax? Interest will be accruing on that as well.

masonkian · 25 Oct 2012 at 15:31

ok thanks i will get it sorted.

my profit on my self assessment was £2,848 for that year obviously that was all my wages also.

how much corporation tax would be payable on that amount ?

Pudney · 25 Oct 2012 at 15:34

Do you mean £2,848 was your profit in your accounts? It wouldn't be your wages as they would form part of your accounts so I assume you mean you paid yourself a dividend.

Tax profits aren't the same as accounting profits, adjustments are made. You're looking at very roughly £600ish of tax.

Edit: And the tax was due in May.

masonkian · 25 Oct 2012 at 15:40

Pudney said:
Do you mean £2,848 was your profit in your accounts? It wouldn't be your wages as they would form part of your accounts so I assume you mean you paid yourself a dividend.

Tax profits aren't the same as accounting profits, adjustments are made. You're looking at very roughly £600ish of tax.

Edit: And the tax was due in May.

wow i would be better on the dole.
are you saying that i have to pay £600 out of the £2848 i earned for that year ?

so £2248 / 52 weeks = £43 a week earnings to live on ?

Jambo · 25 Oct 2012 at 15:46

masonkian said:
wow i would be better on the dole.
are you saying that i have to pay £600 out of the £2848 i earned for that year ?

so £2248 / 52 weeks = £43 a week earnings to live on ?

Well no if it was wages you have a tax free allowance but you'd need to put it through as salary.

Why do you even have a limited company at that level of profit? Why are you not self employed?

I suggest you speak to an accountant and don't continue to make a mess of your company accounts as you clearly don't know what you are doing.

masonkian · 25 Oct 2012 at 15:49

Jambo said:
Well no if it was wages you have a tax free allowance but you'd need to put it through as salary.

Why do you even have a limited company at that level of profit? Why are you not self employed?

I suggest you speak to an accountant and don't continue to make a mess of your company accounts as you clearly don't know what you are doing.

exactly.
i was told to go LTD what a mess.
as of today i have sent a ds01 form off to close the company.
i will be starting as a sole trader.

Pudney · 25 Oct 2012 at 15:51

masonkian said:
wow i would be better on the dole.
are you saying that i have to pay £600 out of the £2848 i earned for that year ?

so £2248 / 52 weeks = £43 a week earnings to live on ?

You didn't earn it, the company did, and quite potentially yes the company will owe that amount in tax. Without more detailed information on your accounts I can't know exactly what the company owes.

Pudney · 25 Oct 2012 at 15:53

masonkian said:
exactly.
i was told to go LTD what a mess.
as of today i have sent a ds01 form off to close the company.
i will be starting as a sole trader.

Who told you to go company at that size?

You'll still need to sort out the HMRC issue, technically they can oppose a striking off.

masonkian · 25 Oct 2012 at 15:53

Pudney said:
You didn't earn it, the company did, and quite potentially yes the company will owe that amount in tax. Without more detailed information on your accounts I can't know exactly what the company owes.

are you an accountant ?
i have my accounts saved in excel.

i don't mind paying for help

Pudney · 25 Oct 2012 at 15:56

masonkian said:
are you an accountant ?
i have my accounts saved in excel.

i don't mind paying for help

I am an accountant, specifically I'm a corporate tax advisor. But you'd be better off going to a small independent firm and getting them to do it, they won't charge a lot.

Plus I'd be told off for using my firm's software for personal business

booyaka · 25 Oct 2012 at 16:24

Pudney has gone over the top to help you OP - SERIOUSLY before you cause yourself more pain, hassle and fines - go and speak to a local accountant.

Who advised you to go Ltd in the first place?

masonkian · 25 Oct 2012 at 16:43

i know and i appreciate it a lot.
he has made me understand it a bit more.

i will be speaking to an accountant to get it sorted out.

thanks guys

Mercenary Keyboard Warrior · 25 Oct 2012 at 18:43

What has happened to the £3k you have taken as turnover?
Have you paid it to yourself?