How to Minimize Corporation Tax?

[nav1]

Hi All,

would like to have expert advice on how to minimize the CT. i have recently finished 1st year of my company, and got companies account from accoutant today. Apart from pension what other options are available to minimize this tax?

-Thanks
nav1

[Moscow Mule]

Pay all of your income out as salary.

[Mich the Tester]

Business meals, vaguely related industry conferences in the South of France, lot of electronic IT junk; just make sure your costs are high and your profits low.

[ratewhore]

Just accept the fact you will have to pay some tax and get on with your life. I know too many contractors who stress the hell out of themselves worrying about how to shave another fiver off their tax bill...

[Mich the Tester]

Just accept the fact you will have to pay some tax and get on with your life. I know too many contractors who stress the hell out of themselves worrying about how to shave another fiver off their tax bill...

It's only really worth the effort if you can shave 5k off your tax bill.

[DimPrawn]

Make less profit.

Run an expensive showy company car
Buy computer kit and software, training courses, professional subscriptions, etc

PS. Paying corp tax is better than paying higher rate income tax + NI

[Cheshire Cat]

reduce your daily rate, and hence your turnover, to match exactly your pre-tax costs (salary and allowable expenses).

[nav1]

Thanks for the reply..

any idea how much CT a company pays on an average. i mean new start-up IT Contractor's self Ltd company(i know it's bit stupid question), just a rough idea

-Thanks
Nav1

[Moscow Mule]

Thanks for the reply..

any idea how much CT a company pays on an average. i mean new start-up IT Contractor's self Ltd company(i know it's bit stupid question), just a rough idea

-Thanks
Nav1

Generally, it's 21% of your profit.

[Harrysp]