This is all relatively new to me so I fear I am still making some mistakes but basically I work out my income/expenditure on a monthly basis so once an invoice is paid I hold back my liabilities for VAT (I’m flat rate), and at the end of the month take away any deductions for expenses etc to leave my interim profit, which I then calculate the Corp Tax, stash that and the VAT away in another account and then take the rest off as a dividend. The thing is I know I can’t take off dividends against future profits, but if I have a large purchase to make for the company can I use they money I have saved away for what I have worked out my Corporation Tax liability will be as technically that will only be profit at the end of the year, or because I have taken a dividend on the profit I have to show that I have enough in my business accounts to cover the liabilities.
I hope this makes sense
I hope this makes sense
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