Hi guys,
I have a quick question regarding the VAT and company profit
Consider the following scenario
Company A has generated a total invoice in one year = £100,000+20,000 (VAT)= 120,000
Company A has paid VAT (flat rate) in one year = £120,000*0.145=£17400
Remaining amount = £102,600
Lets assume this company has no other expenses and all of this £102,600 is the income.
Now
do you have to declare £102,600 as income and pay corporation tax on £102,600 which equates to £20,520
OR
do you have to declare £100,000 as income and pay corporation tax on £100,000 which equates to £20,000?
Thanks
I have a quick question regarding the VAT and company profit
Consider the following scenario
Company A has generated a total invoice in one year = £100,000+20,000 (VAT)= 120,000
Company A has paid VAT (flat rate) in one year = £120,000*0.145=£17400
Remaining amount = £102,600
Lets assume this company has no other expenses and all of this £102,600 is the income.
Now
do you have to declare £102,600 as income and pay corporation tax on £102,600 which equates to £20,520
OR
do you have to declare £100,000 as income and pay corporation tax on £100,000 which equates to £20,000?
Thanks
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