Corp Tax

[Exigeowner]

I understand that the corp tax figure before it jumps from 20 to 30 ish % is approx 300 K profit for one company owned, I am informed that if two companies are owned then its cut to 150 K per company and then three companies 100 K each.

Is this correct even if the industries are completly unrelated ? seems a bit unfair to me, I can understand if individuals open new companies in the exact same field just to avoid paying every time profits near 300K.

Is there any legal way around this, I have heard a holding company mentioned but I assume that one company failing would have the potential to bring all three down.

Thanks.

[Eric Mc]

The rules relate to "associated" companies. I would suggest a look at the HMRC website to have a look at what they consider the word "associated" to mean.

[henna777]

Exigeowner said:

I understand that the corp tax figure before it jumps from 20 to 30 ish % is approx 300 K profit for one company owned, I am informed that if two companies are owned then its cut to 150 K per company and then three companies 100 K each.

Is this correct even if the industries are completly unrelated ? seems a bit unfair to me, I can understand if individuals open new companies in the exact same field just to avoid paying every time profits near 300K.

Is there any legal way around this, I have heard a holding company mentioned but I assume that one company failing would have the potential to bring all three down.

Thanks.

I got caught out on this 2 years ago, does not matter that they are unrelated industry wise, it is share holding of the directors involved. If you can, come to an agreement to make the share holding change then so does the issue of related companies.

[srebbe64]

Slightly off topic I know, but be warned when your company gets above a certain size the Government, in their infinite wisdom, say you have to pay Corp Tax quarterly! Now that's fine after you make the switch, but there is a particular quarter where you'll have to pay last year's Corp Tax and last quarter's Corp Tax at the same time. Hardly "cash-flow friendly" - believe me I know!!!