Tricks for avoiding higher tax for >£300k profits?
Discussion
If my Ltd earns over £300k then are there tricks or clever accounting methods to use in order to reduce the official earnings back to £300k so that I dont get taxed on the higher 30% tax band on the excess?
Also, is main corp tax rate on the whole amount like stamp duty, or on the excess over the lower rate band like income tax?
Also, is main corp tax rate on the whole amount like stamp duty, or on the excess over the lower rate band like income tax?
NorthernBoy said:
May I seriously suggest you hire a decent accountant and use his advice, rather than try to save a few pounds by doing it on here.
If the company that you own is making 300k a year, it is more than worth it.
I do have a decent accountant, but so far I just let them do their job without any questions, and the small Co's allowance hasnt really been an issue before. But was just wondering in advance.If the company that you own is making 300k a year, it is more than worth it.
NorthernBoy said:
May I seriously suggest you hire a decent accountant and use his advice, rather than try to save a few pounds by doing it on here.
If the company that you own is making 300k a year, it is more than worth it.
My Ltd Co makes more than £300k nett per year, and I have a 'decent' accountant, but he isn't terribly inventive and certainly isn't creative when it comes to reducing tax. In my experience, most 'decent' accountants are more interested in accurately calculating the tax you owe than suggesting 'possible' ways of reducing said tax bill.If the company that you own is making 300k a year, it is more than worth it.
I don't object to paying tax, even large amounts of tax, but in a growing business cash is always tight and getting a big lump of money to pay to the taxman always stings a bit (although maybe not as much as sharing a cell with big Bazza).
Hmm seems like some semantics here over what is meant by "decent", so I will clarify.
Get a good accountant. Be willing to put in some time finding out one who comes highly recommended, and who has expertise in the areas that you care about, ad then accept that he (or she) will be expensive, but that it is likely money well spent.
Get a good accountant. Be willing to put in some time finding out one who comes highly recommended, and who has expertise in the areas that you care about, ad then accept that he (or she) will be expensive, but that it is likely money well spent.
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