Zero corporate tax?

[Hemingfield]

Hi,

Still very new to this game - so any help will be appreciated.

I have started a new contract where the lodging and travel expenses on top of the 'salary' technically (just) exceed the invoice amount - does this mean that there would be no Corporation Tax due?

Cheers

Hem

[SomeoneElse]

Well, if by what you say the company actually has no profits (after expenses), then there's nothing to tax - so yes, you're right there's no corp tax to pay.

Keep in mind that payroll and NI is an expense, whereas dividends are not.

[malvolio]

You need to be a bit careful with the sums here. A director has a legal obligation not to trade insolvently. If your expenses exceed your income is one way of doing that. You may well be OK but at least make sure you aren't withdrawing monies that are optional rather than necessary.

[NotAllThere]

You may have to reduce your salary to ensure that the company remains solvent.