advantages of invoicing on a quarterly basis?

trsisko · 1st February 2010, 18:56

Just wondering if Corp tax can be reduced if i were to invoice only a few times on a 6month contract in order to reduce tax?

Disregard the fact an agency or employer could go bust in the mean time, jsut assume both are very very safe.

My colleague seems to think in order to keep corperation tax low you need to keep the business bank account as empty as possible?

Therefore if I invoice a few times and then take out dividends and expenses I keep large sums of cash in the business account for a short period.

Robot · 1st February 2010, 19:00

Quote:

Originally Posted by trsisko

Just wondering if Corp tax can be reduced if i were to invoice only a few times on a 6month contract in order to reduce tax?

Disregard the fact an agency or employer could go bust in the mean time, jsut assume both are very very safe.

My colleague seems to think in order to keep corperation tax low you need to keep the business bank account as empty as possible?

Therefore if I invoice a few times and then take out dividends and expenses I keep large sums of cash in the business account for a short period.

Wouldn't work, accounts are prepared on an accruals basis not on a cash received basis.

Robot

BolshieBastard · 1st February 2010, 19:58

Quote:

Originally Posted by trsisko

Just wondering if Corp tax can be reduced if i were to invoice only a few times on a 6month contract in order to reduce tax?

Disregard the fact an agency or employer could go bust in the mean time, jsut assume both are very very safe.

My colleague seems to think in order to keep corperation tax low you need to keep the business bank account as empty as possible?

Therefore if I invoice a few times and then take out dividends and expenses I keep large sums of cash in the business account for a short period.

Great idea!

You give the agent chance to keep 'your' money for upto 3 months.

You give them an opportunity to go bust on you taking upto 3 months of your money with them.

Erm, you're without 'your' money for up to 3 months thereby not getting any megre interest on it.

Now what were you asking again?

northernladuk · 1st February 2010, 20:05

Quote:

Just wondering if Corp tax can be reduced if i were to invoice only a few times on a 6month contract in order to reduce tax?

<wipes coffee off screen>

I cannot begin to explain what is wrong with this. Really

HairyArsedBloke · 1st February 2010, 20:07

Quote:

Originally Posted by trsisko

My colleague seems to think in order to keep corperation tax low you need to keep the business bank account as empty as possible?

WTF!

How did he/she get the gig if they think like that? If that is what passes for talent these days, it's no wonder why Bob 'n Pals are getting so many jobs.