Saving more on VAT and corporation tax

[abc111]

You've made it clear you don't want our expert opinion, so why should anyone bother dispensing it to you. You're looking for people to agree with you. Agreeing with what you've said would contradict the years of experience many of us have and the knowledge/expertise we possess.

Ok then what to do?
just last time ...if you could reply i will consider it as an advise...

[SueEllen]

Ok then what to do?
just last time ...if you could reply i will consider it as an advise...

See Lady Muck's answer above

[chopper]

there are accountants who claim that they will make sure that you take away 90% of your income...how do they do it!

By running a 'scheme' which later turn out to be illegal and so HMRC come for the rest of their money. See the 'HMRC Scheme Enquiries' forum linked above. It'll be your arse on the line, not your "accountant's" arse when HMRC come knocking.

90% take home is evasion.

what project activities you can claim as expenses -excluding travel, dining and lodging etc.
for example, if you are working on a project and get paid hourly then what activities you can put down that won't attract VAT and tax... i.e. expenses...

expert opinion please no nonsense...

Expert opinion... The only expenses you can claim for relief against tax are expenses incurred wholly and exclusively for the purpose of the business. If you don't incur the expense, then you cannot claim tax relief.

Forget VAT. You add 20% onto your invoice and hand that over to HMRC in full. You don't get to keep it.

To reiterate, to save money on Corporation Tax, you first have to spend the money for a legitimate business purpose (e.g. your mobile phone contract in your company's name, legitimate travel expenses required for that business, legitimate capital expenses, e.g. computer equipment that your business requires, or your accountant's fee for preparing your company's accounts and tax advice he provides, £216 a year for use of home as an office).

If you don't incur the legitimate expense in the first place, you cannot claim tax relief. 19% of £0 expenses is £0 tax saved.

If you are thinking you can put your mortgage costs in, the cost of a new kitchen, your weekly shopping bills, your utility bills - then no you can't.

[ladymuck]

By running a 'scheme' which later turn out to be illegal and so HMRC come for the rest of their money. See the 'HMRC Scheme Enquiries' forum linked above. It'll be your arse on the line, not your "accountant's" arse when HMRC come knocking.

90% take home is evasion.



Expert opinion... The only expenses you can claim for relief against tax are expenses incurred wholly and exclusively for the purpose of the business. If you don't incur the expense, then you cannot claim tax relief.

Forget VAT. You add 20% onto your invoice and hand that over to HMRC in full. You don't get to keep it.

To reiterate, to save money on Corporation Tax, you first have to spend the money for a legitimate business purpose (e.g. your mobile phone contract in your company's name, legitimate travel expenses required for that business, legitimate capital expenses, e.g. computer equipment that your business requires, or your accountant's fee for preparing your company's accounts and tax advice he provides, £216 a year for use of home as an office).

If you don't incur the legitimate expense in the first place, you cannot claim tax relief. 19% of £0 expenses is £0 tax saved.

If you are thinking you can put your mortgage costs in, the cost of a new kitchen, your weekly shopping bills, your utility bills - then no you can't.

Here endeth the music news

[SueEllen]

Here endeth the music news

It's not the answer the poster wants.

[chopper]

It's not the answer the poster wants.

I suspect if you too had already spent your VAT and CT money, you'd be looking for ways to minimise your liability to HMRC.

[SueEllen]

I suspect if you too had already spent your VAT and CT money, you'd be looking for ways to minimise your liability to HMRC.

The only advice I can give is pay the VAT immediately and sort out an agreement about the CT.

[Lance]

I suspect if you too had already spent your VAT and CT money, you'd be looking for ways to minimise your liability to HMRC.

and if the cash has already been spent then any 90% schemes aren't going to help as it's too late.
It's OK though. It's a limited company so has limited liabilities......

Apart from the OP could lose his house, all his possessions. Might not need a house though as prison is a possibility.

[WTFH]

Saving more on VAT and corporation tax

Please, please "General"...

Where do you think it is?

If I had a pound for every request to move this thread, I'd have £1.20 right now. Tax free.

[WTFH]

Ok then what to do?
just last time ...if you could reply i will consider it as an advise...

OK, my advice: you can't "save money on VAT"
You charge your client VAT at 20%.
You pay that 20% to HMRC.

Put it like this: If you invoice for £100+VAT = £120, then the client pays £100+VAT = £120.
£120 sits in your business bank account.
When you submit your quarterly VAT return to HMRC, you pay them the £20, leaving £100 in your business account, which is your company money.
I'm not talking about CT, expenses, NIC, personal taxes, etc, just VAT at this stage.

So, I've been good enough to give you factual advice. Please answer the following simple questions which may help us give you further advice:
Have you been doing your VAT returns and paying the VAT to HMRC, or have you been considering that "your money"?
Who was your "chartered accountant"?
Who is currently doing your company accounts?
Who is doing your personal accounts?