Articles tagged with: profit
In the good old days there was an easy way to work out the optimum pattern of salary and dividends for directors of small UK companies. With the advent of the Finance Bill 2016 the situation has become hopelessly complex and that prompted AccountingWeb to publish a critical blogpost. Here’s the first bit with the all important table:
If you want to see the blogpost in full you’ll have to sign up for membership of AccountingWeb. It’s a free resouce for accountants!
And, as we said in our 30 Nov 2015 blogpost, …
1. Keeping business records – the full story
1.1. This system is designed to help you keep things as simple as possible.
1.2. At the same time, it is designed so that it works with almost every bookkeeping system and every accounting system there is. You can generate your prime records (invoices etc) using Word or Excel or similar applications, and you can store your records on DropBox. That way, we can both find what we need, when we need it.
1.3. We use specialist software which only accountants would want to buy. …
one offs »
You need a payroll account with HMRC in order to make remittances of tax and national insurance (even if the amounts are NIL). For historic reasons this account is called a “scheme” and it has two different reference numbers, one for the Inspector of Taxes (a PAYE ref) and a different one for the Collector of Taxes (the Accounts Office ref). We need both numbers!
At some point in the next 10 days, you should receive a letter (like the one above) from the tax office which gives you the two …
getting things done »
This is a fantastic question and we hear it quite often “I have too much profit, what can I do about it?”
It is however a coded version of something else, and it can mean either:
I don’t have enough profit. I know that, because I have drawn all the money out of my business and I have nothing left to pay my tax bill.
I have ridiculously large sums of money floating around, even after paying my tax bills, and I’m in danger of taking up a ridiculously expensive hobby!
Depending on which …