- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: Corp tax calculation
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Corp tax calculation"
Collapse
-
Originally posted by malvolio View PostI use real VAT so am no expert in FRS, but I thought it was charged on total gross income to keep it simple, which is the whole point of it - but let's hope an expert turns up and confirms it one way or the other.
http://www.shout99.com/contractors/s...?id=52409;n=10
Leave a comment:
-
Originally posted by malvolio View PostI use real VAT so am no expert in FRS, but I thought it was charged on total gross income to keep it simple, which is the whole point of it - but let's hope an expert turns up and confirms it one way or the other.
Originally posted by http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel= pageImport_ShowContent&id=HMCE_CL_000345&propertyT ype=document#P523_38614How do I use the basic turnover method?
Apply the flat rate percentage for your business to the VAT inclusive total of the supplies that have their tax point in the VAT accounting period.
Tax points are worked out using the normal VAT rules for time of supply. If you issue VAT invoices, this is often the date you issue an invoice. But in some circumstances it will be the date you receive payment, or the date you complete a service or make goods available to your customer.
The detailed rules which you must follow are in Notice 700 The VAT Guide.
Leave a comment:
-
Originally posted by Archangel View PostFlat rate VAT is only charged on items related to sales, so bank interest (and tax refunds etc) are excluded.
Leave a comment:
-
Originally posted by malvolio View PostYou take all your gross income per quarter from any source - sales invoices, bank interest, VAT charged, returned CT, whatever - and pay 13% (or whatever) to Hector.
Leave a comment:
-
Originally posted by malvolio View PostSo many questions... if only there were an expert to turn to...
Ok, ok, enough already! Yeah, I probably do need an accountant again. The problem is, having ditched the last one in Feb, I'm not sure if I take a new one on now that they will handle the forthcoming returns for last year. Why should they? Also, I wasn't working for a while, and even now I'm not sure where the next contract is coming from after next week, so didn't see much benefit in forking out accountancy fees when there was nothing to account for!
Leave a comment:
-
Ermmm.... Sure you don't need an accountant? OK, your funeral, but these are basics.
21% is this tax year. Last year it was 20, next its 22, then it's 23 (then, God willing, we get a governement that understand fiscal policy). That was all set in the budget a year or so back. So what do you do if your company year crosses two tax years?
Do you also understand FRS properly? You take all your gross income per quarter from any source - sales invoices, bank interest, VAT charged, returned CT, whatever - and pay 13% (or whatever) to Hector. AS far as CT is concerned it's an expense and is part of what turns gross income into taxable profit. In other wrds, for your purposes, it's an expense. So what about the sum that is made up of what you charge in VAT and what you pay in VAT. Is that part of your profit?
How do you depreciate your assets and what impact does that have on CT?
I'm assuming you are outside IR35 by the way, else you really are in trouble!
So many questions... if only there were an expert to turn to...
Leave a comment:
-
Originally posted by malvolio View PostSlightly worried you ask about dividends - which are paid out of net profit after CT is paid - and combining them with PAYE/NI. Do you really understand the concepts properly? "Vague ideas" are not a good basis for working out key calculations that can land you in trouble if you're wrong. And if you don't know the rules, I hope that's someone else's spreadsheet you're using.
How does the FRS VAT get involved in my calculations?
And is your percentage figure of 21% what I use for 2007?
Cheers.
Leave a comment:
-
Gross income less all costs multiplied by 21% (this year) should do it.
Expenses are all outgoings, costs of sales, wages, Employers NICs and business-related purchases, Employee's tax and NICs paid under PAYE, office rentals, depreciation, yada yada yada... VAT is not really in the system, strictly speaking, but you'll have paid that out so it works as an expense (real VAT, as opposed to FRS, is different)
Slightly worried you ask about dividends - which are paid out of net profit after CT is paid - and combining them with PAYE/NI. Do you really understand the concepts properly? "Vague ideas" are not a good basis for working out key calculations that can land you in trouble if you're wrong. And if you don't know the rules, I hope that's someone else's spreadsheet you're using.
Leave a comment:
-
Corp tax calculation
Hello again,
could someone possibly give a beginners guide to calculating corporation tax? I have a vague idea, but not sure where some of the factors come into play.
I'm talking for the company year 2007, and the factors I need to take into account are:
- minimum salary (£450ish/month)
- dividends (hence nil PAYE/NI)
- FRS VAT
- minimal expenses (travel and home office costs)
Of course, my spreadsheet tells me the answer, but like many of you I like to work out the figures for myself.
Cheers!Tags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: