Reply to: How to Minimize Corporation Tax?

[FarmerPalmer]

Did he mean fat?

I hope not ... but each to their own.

[FarmerPalmer]

There are just 2 certainties - death and taxes - and you can't avoid either.
If you make money then you pay tax - that is the deal.

Take turnover, deduct Salary & employers NI, pension, and legitimate business expenses - the rest is profit - and you pay corporation tax on it.

[Lumiere]

.. fast cars .. shiny women ?

[basshead]

Did he mean fat?

[denver2k]

Blow it all on shiny cars,mac computers, fast women, expensive holidays
and put it all on the company account

[Andy2]

Blow it all on shiny cars,mac computers, fast women, expensive holidays
and put it all on the company account

[MikeC1408]

Generally, it's 21% of your profit.

Quality

[Fred Bloggs]

You can pay zero corporation tax. Just pay everything out of the company to yourself as salary. HTH.

[AZZIK]

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

Go back to being a permie

[Harrysp]

[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.

[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

[Cheshire Cat]

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

[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

[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.