New Business Tax Question

[maildodge]

Hi, I just wanted to clarify something for myself.

I've set up a new company and just wanted to confirm how business tax works and how much I will be paying.

Is it correct to say that it will be a percentage of our profits. If so what is that percentage?

Basically I need to make sure on an item I sell I allow money to be deducted for tax. So if I buy something for £10 and sell for £25 I will be paying a percentage of tax on the £15 profit!?

Thanks for your help.

[Jayne]

Hi,

It doesn't quite work like that. It is worked out over the whole year, you are allowed to earn so much before Tax, about 8k ish I think. The % goes up, the more you earn. Then there's things you spend on your business over the year, some if not all will be Tax deductable.

Have you got an accountant yet, I strongly recommend you get one before you start your biz, they will be able to go through all this before you price your things up etc..

Alpha will tell you the Tax stuff, but you will need an accountant.

Best Wishes and good luck with the biz

Jayne :D

[KM-Tiger]

.............................
I've set up a new company and just wanted to confirm how business tax works and how much I will be paying...............
What sort of company?

There is a big difference between taxation for a ltd company and a sole trader or partnership.

You really should seek the advice of an accountant, or you run the risk of paying too much tax through ignorance.

[Eagle]

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When the website is back up and running, speak to James at www.jamesesmith.co.uk. for all your accounting needs. :)

[gj]

Most accountants offer an initial consulatation free of charge and without obligation.

Would be worth seeing one locally to cover these sort of questions - can get very wordy answering a fairly open question on a forum like this.

However, if you would like to chat it through, you can call me on 01908 630230

Graham Jenner

[maildodge]

Thanks for all your help, I have actually already got an accountant sorted. But they were unavailable at the time. It is something I have not gone through yet with them and just wanted to understand it a bit better myself before asking them. I will get on the phone to them tonight and confirm all details.

Thanks again.