Corporation Tax...

... so is corporation tax now due on ANY profit you make or is there still a grace amount of say £10k?

Tim

Re : Corporation Tax

Tim

I could tell you the answer, but that would save you the fun of finding out!

Seriously though if you need help with this sort of thing just send me a message...

Chris

Re : Corporation Tax

The answer to your question Tim is no. The zero rate on taxable profits of £10,000 or less was scrapped by Gordon Brown as from 2007. You should note that if your taxable profit had come out at £10,001 then the zero rate would not have applied at all. Your profit had to be no more than £10,000 to qualify.

What you should look out for now however are the new regulations announced in Brown's last budget of 2007 and which come into force in 2009. The rate of tax goes up and it is capital allowances that will become the chief source for relief. But this means for example that a small company that makes a taxable profit of say, £11,000 could end up paying more tax than before. In fact it could conceivably be paying 1110.2% more in 2009/2010 than would have been the case in 2005.

If you find that hard to believe, take a look on our website's article below:

http://www.figurewizard.com/article.php/Budget_2007_Exposed_Small_company_tax_in_Budget_2007_

Joe
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http://www.figurewizard.com Free Business Forecasting and Planning Online

Re : Corporation Tax

Thanks Joe - that's very clear and useful, one of the best posts I've read in ages so many thanks

Tim

Re : Corporation Tax

Yep, well written Joe !!!

Re : Corporation Tax

Much more useful than you Chris