I'm putting away 20% of my monthly income for corp Tax

[sidknows]

in theory , 20% of invoice is fine as you only pay 20% of profits

However given that we have no idea what you are running as a salary or dividend , it might not be enough

[Nixon Williams]

in theory , 20% of invoice is fine as you only pay 20% of profits

However given that we have no idea what you are running as a salary or dividend , it might not be enough

For the year to 31/03/08, 20% is the maximum you would have to pay, any salary and other costs would reduce this amount.

The rate increases to 21% on 1st April 2008 (unless the Chancellor changes this in the Budget).

Your accountant should be advising on this anyway.

Alan

[Turion]

"He also used to wind his company up every two years and just leave a few quid for the IR and VAT quoting that they should just "help themselves" to whats left"


You need the taxmans approval to voluntarily wind up a company and they only give that if your accounts are up to date and fully paid up.

[Alan @ BroomeAffinity]

"You need the taxmans approval to voluntarily wind up a company and they only give that if your accounts are up to date and fully paid up.

Most likely he just let the company drift into liquidation or non-existence. I've seen a fair few of these in my time. The tax and VAT offices can take about 3 years before they do anything in terms of winding up. I know of a contractor who is on his 4th company in maybe 15 years. He has earned about £50k a year from each and has paid very little tax. His first 2 companies have had liquidators appointed but so far they haven't seen the relation or the pattern. God knows how when you consider that the addresses are the same and the only change in the name is XX Contracts Ltd to XX Solutions Ltd.