Can you keep money in a company?

[Sockpuppet]

I've come to the end of my first financial year too. Surely you only pay CT once on the profit left over, not repeatedly into the next year if the profit remains in the company? Otherwise, I'd be CTd on the same sum two years running.

I would only expect to pay CT on any new fees coming in during the second year of trading and only pay tax on any withdrawals from the first year's profits.

Bingo.

Once again we come back to Profit != Cash In Bank.

Say it again. You pay CT on PROFIT. There are different tax years so with exception of stuff such as depreciation what happened last tax year has little to do with what goes on in this tax year.

[SoupDragon]

I would guess profit is only dividend payment from the stock your company buys - and capital appreciation too.

When I get an accountant, I'll be sure to ask