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Company expenses ideas for excess funds

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    Company expenses ideas for excess funds

    Hi, I’m running a contracting business and luckily this year depite maxing out pension contributions , and base rate dividend/salary I will have excess of 18k in the business.
    I can buy laptop or 2 but wondering if there’s better way to spend *before* paying corporation tax?

    can I, say, lease a shop for that money or buy business or would such invested money would have to come after CT?
    any other ideas ?

    #2
    Originally posted by GitMaster69 View Post
    Hi, I’m running a contracting business and luckily this year depite maxing out pension contributions , and base rate dividend/salary I will have excess of 18k in the business.
    I can buy laptop or 2 but wondering if there’s better way to spend *before* paying corporation tax?

    can I, say, lease a shop for that money or buy business or would such invested money would have to come after CT?
    any other ideas ?
    Get an accountant

    If you have an accountant, ask them

    But most people keep the money for a rainy day and eventual retirement.

    After all why do you need 2 laptops and do you actually need a new one.

    Now if it was £50k and you wanted a new car - buying an electric company car is a great deal
    merely at clientco for the entertainment

    Comment


      #3
      Tesla is what my accountant recommended, I’m wondering if combined experience of this forum have some more good ideas

      Comment


        #4
        Originally posted by GitMaster69 View Post
        Hi, I’m running a contracting business and luckily this year depite maxing out pension contributions , and base rate dividend/salary I will have excess of 18k in the business.
        I can buy laptop or 2 but wondering if there’s better way to spend *before* paying corporation tax?

        can I, say, lease a shop for that money or buy business or would such invested money would have to come after CT?
        any other ideas ?
        18k? That isn't going to keep you going for very long. Add it to your warchest.

        Comment


          #5
          Originally posted by jamesbrown View Post

          18k? That isn't going to keep you going for very long. Add it to your warchest.
          Would be 13.5k because of CT of 25% very soon

          Comment


            #6
            Originally posted by jamesbrown View Post

            18k? That isn't going to keep you going for very long. Add it to your warchest.
            This. 18k can get swallowed up in no time when you've a 6 month stint on the bench. You need 6 months + of full pay in the bank ready for the worst.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by northernladuk View Post

              This. 18k can get swallowed up in no time when you've a 6 month stint on the bench. You need 6 months + of full pay in the bank ready for the worst.
              I don’t need warchest.

              how do I spend 18k before paying CT . Any clever tricks aside from buying Tesla ?
              I’m tied to PCP for another 2 years

              Comment


                #8
                Have you considered creating an overseas shell company, selling the IP of all your work to it and then paying it a hefty license fee for use of said IP? That'll get your CT bill down nicely.

                Comment


                  #9
                  Originally posted by GitMaster69 View Post

                  Would be 13.5k because of CT of 25% very soon
                  Eh? You're making absolutely no sense. I seriously hope you have an accountant...

                  Comment


                    #10
                    Originally posted by GitMaster69 View Post

                    I don’t need warchest.

                    how do I spend 18k before paying CT . Any clever tricks aside from buying Tesla ?
                    I’m tied to PCP for another 2 years
                    I can sell you some consultancy services for £18k if you like

                    Comment

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