When you approach the end of your business tax year it is vital to review the financial data.
This will allow you to consider strategic plans within the tax year to control liabilities. In the event these dates are missed, full corporate tax due would fall and any planning would have to fall into the next business tax period.
An example of this may be:
Business revenue = £200,000
Expenses claimed = £20,000
Salaries paid to 2 staff = £22,000
Dividends taken = £20,000
Company tax due in this example = £31,600
If, however, we added in
- Company pension for 2 people @ £40,000 each
- Further appropriate expenses @ £10,000
This would reduce the profit down by £90,000 and the tax by £18,000.