Reply to: Company Cash Reserve

[psychocandy]

I Already asked her the question (over a week ago) alas no response! And its all a learning curve, and self employment happened for me very quickly 'forced'. hence im still playing catch up.

A week and no response. Sod that. Would be gone by now.

[psychocandy]

I am not currently on a pay role, though I will need to start paying some dividends and salary soon (a small one of course).

Umm, seems I need to get the accountant earning her keep!

Great site by the way, lots of info on subjects that i didnt even know where subjects

Get rid of accountantant

[northernladuk]

I Already asked her the question (over a week ago) alas no response! And its all a learning curve, and self employment happened for me very quickly 'forced'. hence im still playing catch up.

Plenty of good accountants around that advertise and even post on here. Can't get anyone that knows contractors better.

[tractor]

...

It is amazing the number of people who go into business for themselves without even a basic understanding isn't it!!

Absolutely! The first book I ever bought when I moved into IT oh so very many years ago was a Collins-Gem Mathematics Basic Facts book. Kept it with me for years so that I didn't make stupid mistakes. From then on, I only made clever ones

Seriously though, the Dummy series on almost any topic and many basic reference books are a must.

[northernladuk]

It is amazing the number of people who go into business for themselves without even a basic understanding isn't it!!

That is why IR35 ought to include a questionaire to be filled in by the director and if the person doesn't understand his business or his relationship with the client agent they should fail IMO. How can someone not understand these yet demonstrate the are working as a business for IR35. Not as clear cut and not putting that forward as an option but does bear thinking about.

[harrison]

I Already asked her the question (over a week ago) alas no response! And its all a learning curve, and self employment happened for me very quickly 'forced'. hence im still playing catch up.

[Craig@Clarity]

I did wonder how long it would be before the answer came out

I would like to make a suggestion:

Accounting for Dummies


Maybe mods could sticky it lol....

It was like an itch I couldn't help but scratch!

[JamJarST]

I did wonder how long it would be before the answer came out

I would like to make a suggestion:

Accounting for Dummies


Maybe mods could sticky it lol....

It is amazing the number of people who go into business for themselves without even a basic understanding isn't it!!

[JamJarST]

I have employed an accountant but shes not killing herself with pro-activity! Im overseas so its difficult just to knock on her door. I am all over the legit expenses etc.. But I see this matter needs some input from her sooner rather than later.

Cheers

Have you asked her the question? If not I don't see how you can really criticise her, and what exactly do you expect her to be "proactive" about?

[tractor]

...

Just a minor technical point. Retained profit is profit after deducting corporation tax and dividends paid.

Turnover less expenses is net profit. Corporation tax is charged at 20% on net profit. Profit after tax less dividends paid equals retained profit.

CT isn't strictly charge on net profit as there can be some accounting and tax adjustments e.g. capital allowances, to make on net profit but the basic framework is as above.

I did wonder how long it would be before the answer came out

I would like to make a suggestion:

Accounting for Dummies


Maybe mods could sticky it lol....

[northernladuk]

Umm, seems I need to get the accountant earning her keep!:

I would suggest you get a new one to be honest. My accountants are not overly proactive but they have crap loads of guides, spreadsheets and regular mailshots on contractor related issues and I don't think I have had to wait over a day for a mail yet.

[amcdonald]

1st you don't pay further Corp Tax on Divs (that's what Craig and others have been trying to say.
2nd Leaving EVERYTHING in the business account may actually be less tax efficient than removing your Income Tax allownace - use it or lose it.

And don't forget they maybe personal tax to pay on dividend income if you go into the 40% income tax band

[harrison]

I am not currently on a pay role, though I will need to start paying some dividends and salary soon (a small one of course).

Umm, seems I need to get the accountant earning her keep!

Great site by the way, lots of info on subjects that i didnt even know where subjects

[Notascooby]

Just a minor technical point. Retained profit is profit after deducting corporation tax and dividends paid.

Turnover less expenses is net profit. Corporation tax is charged at 20% on net profit. Profit after tax less dividends paid equals retained profit.

CT isn't strictly charge on net profit as there can be some accounting and tax adjustments e.g. capital allowances, to make on net profit but the basic framework is as above.

Thanks - that's why I'm not an accountant

[Craig@Clarity]

Just a minor technical point. Retained profit is profit after deducting corporation tax and dividends paid.

Turnover less expenses is net profit. Corporation tax is charged at 20% on net profit. Profit after tax less dividends paid equals retained profit.

CT isn't strictly charge on net profit as there can be some accounting and tax adjustments e.g. capital allowances, to make on net profit but the basic framework is as above.