advantages of invoicing on a quarterly basis?

[trsisko]

Just wondering if Corp tax can be reduced if i were to invoice only a few times on a 6month contract in order to reduce tax?

Disregard the fact an agency or employer could go bust in the mean time, jsut assume both are very very safe.

My colleague seems to think in order to keep corperation tax low you need to keep the business bank account as empty as possible?

Therefore if I invoice a few times and then take out dividends and expenses I keep large sums of cash in the business account for a short period.

[Robot]

Just wondering if Corp tax can be reduced if i were to invoice only a few times on a 6month contract in order to reduce tax?

Disregard the fact an agency or employer could go bust in the mean time, jsut assume both are very very safe.

My colleague seems to think in order to keep corperation tax low you need to keep the business bank account as empty as possible?

Therefore if I invoice a few times and then take out dividends and expenses I keep large sums of cash in the business account for a short period.

Wouldn't work, accounts are prepared on an accruals basis not on a cash received basis.

Robot

[BolshieBastard]

Just wondering if Corp tax can be reduced if i were to invoice only a few times on a 6month contract in order to reduce tax?

Disregard the fact an agency or employer could go bust in the mean time, jsut assume both are very very safe.

My colleague seems to think in order to keep corperation tax low you need to keep the business bank account as empty as possible?

Therefore if I invoice a few times and then take out dividends and expenses I keep large sums of cash in the business account for a short period.

Great idea!

You give the agent chance to keep 'your' money for upto 3 months.

You give them an opportunity to go bust on you taking upto 3 months of your money with them.

Erm, you're without 'your' money for up to 3 months thereby not getting any megre interest on it.

Now what were you asking again?

[northernladuk]

Just wondering if Corp tax can be reduced if i were to invoice only a few times on a 6month contract in order to reduce tax?

<wipes coffee off screen>

I cannot begin to explain what is wrong with this. Really

[HairyArsedBloke]

My colleague seems to think in order to keep corperation tax low you need to keep the business bank account as empty as possible?

WTF!

How did he/she get the gig if they think like that? If that is what passes for talent these days, it's no wonder why Bob 'n Pals are getting so many jobs.

[Mr.Whippy]

Words just fail me................

[Fred Bloggs]

advantages of invoicing on a quarterly basis?

None. HTH.

[pzz76077]

Good Idea.

I always invoice quarterly - 4 times a month as regular as clockwork, have done for years.

With just about every other agency going bust at the moment, what are you thinking??

PZZ

[Clippy]

My colleague seems to think in order to keep corperation tax low you need to keep the business bank account as empty as possible?

Genius.

Why didn't I think of this??

[thunderlizard]

Contractors don't usually have a "colleague". Do you mean "competitor"?