How would this work in terms of HMRC/Company profit?

[SallyPlanIT]

Thanks Sally (just a sidenote: hopefully next year ill be moving to you folks for my accountancy stuff!)

Thank you I would say, don't wait until the end of your year. We pride ourselves on our pro-active approach with clients. We can only be reactive if you wait until the year end...TOO LATE!

I guess really, wont find out how much I can "take home" from that profit until after the end of year taxes have been paid. Well, I guess its something, even if it were a few quid worth of profit.

You need to get your accounting solution sorted out. If you get the accounts up to date on a month by month basis then you can see what amount of profit is available in your company for you to distribute as dividends to you (and any other shareholders). Think of, Income less expenses equals profit. That profit figure is to take dividends from, just remember to keep money aside for PAYE, VAT and Corporation Tax.

whilst I understand its 21% to be given to HMRC for this "profit" or selling of services/products, still think that there is something somewhere I am missing which will cause my "profit" to be next to nothing.

This depends solely on the expenditure you put through the business. More expenses equals less tax.

another question: would it be better to setup a seperate bank account for these selling of products rather than through my own company bank account? I wouldnt want to get into a situation where I keep paying for the rental of services to my server provider when say, my end client for whatever reason doesnt transfer the funds and my business bank balance goes 0 (my business bank account contain money for HMRC, PAYE etc... etc...)

IMHO it is a good idea to set up another bank account. It has to be in the Company Ltd name. Go for one that has a good rate of interest, I believe Scottish Widows are worth looking at. You could attain a higher return if you have a notice period, which should work as you know what dates your bills have to be paid.

all im getting at is, its the first time im doing this and dont want to mess anything up - thats all.

Right way of thinking, just get an accountant sooner rather than later!

hmmm....you can see I haven't used multiple quotations before!

[malvolio]

Just as an aside - or perhaps a sanity check - while it is good to reduce taxable profits so as not to give too much to Hector, the general idea of being in business is actually to make a profit. You should never let the taxation tail wag the business dog.