Tax on business income NOT wages?

[sidekickdmr]

Hi,

Just a quick one before I enlist the help of an accountant.

If I stop work and start a business by spending £50,000 of our own money while my wife continues to work and support us both financially, and every single penny the business takes is put straight into business savings, to be spent on expanding the business further (no income or wages are taken from any of the income).

How much tax would be payable on this business turnover?

Thanks

[sidekickdmr]

Highly likely to be a Ltd company with me and my wife.

Unless there is a benefit of doing it differently?


So the Idea is, spend £50,000 of our own money on building one holiday lodge, I will manage/maintain/clean/promote/book/market this and get it as booked up as possible.

All of the income this let brings in will build up and up in a savings account until we have £50,000 in the bank, when I will build number 2.

Once number 2 is built we will start to take some wages, but it’s the period between 1 and 2 I’m interested in at this stage.

Edited by sidekickdmr on Thursday 26th May 13:43