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| Corporation Tax |
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Companies resident in the UK are subject to Corporation Tax on their profits. Non-resident companies may also be subject to this tax if they trade in the UK through a permanent establishment. The main rate of Corporation Tax is 30 per cent, charged on the whole of profits where they exceed £1,500,000. The small companies rate of 19 per cent is paid on the first £300,000 of profits where these are between £50,000 and £1,500,000. Companies are subject to many special rules and qualify for a variety of special tax reliefs. In our experience, many companies pay more Corporation Tax than they need to – and other taxes or quasi-taxes such as National Insurance as well. We are experts in this complex field and would welcome the opportunity to show you how we could reduce your company’s overall tax bill. Below is a case study of one company we helped Example: A company has trading profits of £1million for the accouting period ended 31 March 2009, The directors would like to pay out £700,000 to the key director(s) / employee(s) in recognition of their performance. The following illustration shows the comparative costs of a conventional bonus compared with a contribution to this specialist pension. Company's Position
Individual's Position
*For the purposes of this illustration it is assumed that all of the arragement fee will treated as capital by HMRC and therefore not allowed as a deduction in calculationg the corporation tax due for the year. For more information about how we could work with you to reduce your company's taxes, contact us today. |
