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Saving more on VAT and corporation tax

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    #31
    Originally posted by cojak View Post
    I'm not inclined to move this thread.
    I thought it had been moved.

    Comment


      #32
      Originally posted by chopper View Post
      I hope you're not using 20% as your FRS rate. If you're a contractor then you'll be using the 13.5% FRS rate. If you have much in the way of expenses (and expenses are the only way to reduce your CT and VAT bills) then you're best on standard VAT, not Flat Rate VAT.
      16.5% from April 2017 - I suspect the OP doesn't do a lot of buying products for resale.

      If you really, really want to not pay any VAT or CT then...

      1. De-register from VAT. By not charging VAT, you don't have to pay any over to HMRC.
      2. Run YourCo at a loss. By not making a profit, you won't have to any any CT over to HMRC.

      1. is only possible if your turnover is low. 2. means you have to extract funds by PAYE as you have to have sufficient funds in your reserves or else any dividends will be illegal.

      HTH

      Comment


        #33
        Originally posted by stek View Post
        Come to Ireland, CT is 13%.
        No that can't be right. If the UK were to lower its Corp Tax rate it would become some sort of dirty tax haven for crooks and millionaires. It would also be "unfair". I know this because a Remainer told me. It seemed such an awful prospect, I can't believe that anywhere in the EU has a Corp Tax rate lower than 19%.

        https://www.theguardian.com/world/20...britain-brexit

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          #34
          I think the first year of trading you get a discount in VAT but with all the recent changes, there are no VAT savings to be had. In any case, it was never a means to make some money.

          With regards to Corp tax, if you show a loss, you wont have to pay any. It is upto you to determine how to make a loss on your business. Very likely you will be investigated, only the mega corporates like Google and Starbucks are allowed to indulge in that kind of dodgy accounting.
          Vote Corbyn ! Save this country !

          Comment


            #35
            Originally posted by ladymuck View Post
            16.5% from April 2017 - I suspect the OP doesn't do a lot of buying products for resale.

            If you really, really want to not pay any VAT or CT then...

            1. De-register from VAT. By not charging VAT, you don't have to pay any over to HMRC.
            2. Run YourCo at a loss. By not making a profit, you won't have to any any CT over to HMRC.

            1. is only possible if your turnover is low. 2. means you have to extract funds by PAYE as you have to have sufficient funds in your reserves or else any dividends will be illegal.

            HTH
            thanks i am just an engineer working for a company on ltd company basis...
            i generally skip quite a few expenses as keep a record is a mammoth task for me...i take it expenses should save me both VAT and CT...


            question: does client submit record and details of their payees to HMRC who they pay HMRC and how much they have paid...!! thanks..
            Last edited by abc111; 11 September 2017, 14:50.

            Comment


              #36
              Originally posted by abc111 View Post
              thanks i am just an engineer working for a company on ltd company basis...
              i generally skip quite a few expenses as keep a record is a mammoth task for me...i take it expenses should save me both VAT and CT...
              What does your board of directors say?

              Comment


                #37
                Originally posted by abc111 View Post
                thanks i am just an engineer working for a company on ltd company basis...
                i generally skip quite a few expenses as keep a record is a mammoth task for me...i take it expenses should save me both VAT and CT...


                question: does client submit record and details of their payees to HMRC who they pay HMRC and how much they have paid...!! thanks..
                Oh dear...

                Go back to permanent employment if you can't be bothered to keep records.
                "You’re just a bad memory who doesn’t know when to go away" JR

                Comment


                  #38
                  Originally posted by PhiltheGreek View Post
                  What does your board of directors say?
                  sole director -me.

                  question: does client submit record and details of their payees to HMRC who they pay HMRC and how much they have paid...!! thanks..

                  Comment


                    #39
                    Originally posted by abc111 View Post
                    question: does client submit record and details of their payees to HMRC who they pay HMRC and how much they have paid...!! thanks..
                    No. An agency would though.
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                    Comment


                      #40
                      Originally posted by abc111 View Post
                      sole director -me.
                      I thought you might say that. You are comprehensively f*cked.

                      Originally posted by abc111 View Post
                      question: does client submit record and details of their payees to HMRC who they pay HMRC and how much they have paid...!! thanks..
                      They just send your staff pass picture to make sure HMRC know who the record is for.

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