Quick Calculation Question....

[Daxis]

Hi, guys - go easy on me - I'm paying an accuonant to do the end of year books, but I'm just doing a quick rough workout - can you tell me if I'm calculating this correctly?

Income [ Sales (exc VAT) & VAT [Profit from FRS] & Bank Interest = £40k
Expenditure [ salary, paye, expenses reimbursed, company expenses] = £13

Profit Therefore = £27k

Corp Tax = 3/12 @ 20% and 9/12 @21% = £5600

Available to distrbute via dividend = £21,400

[Bluebird]

looks about right to me,

One point to consider...

From a personal point of view, you'll need to check your income in terms of salary & dividends and personal bank interest to see if any of the divi income exceeds the lower level tax limit - if so you might want to pay some divi this year, and some next financial year - if thats possible.

I'm presuming that your company accounting year finishes in December [ hence the 3/9 split of CT rates ] ??

[chris79]

Hmm yeah, but I thought the corp tax was done on days, not months. Sure I saw this on HMRC.

[ASB]

Hmm yeah, but I thought the corp tax was done on days, not months. Sure I saw this on HMRC.

It is days, you can figure it out from here:- http://www.hmrc.gov.uk/ctsa/mrr_worksheet.htm.

But the OP did say roughly so 3/12 and 9/12 is pretty close.