Limited company tax payments

[hellohellooo]

Hello all

Just recently opened a limited company

30 k has come in for my first year
I know I need to pay tax and also corporation tax

My accountant is really bad at getting back to me

Is my corporation tax 25 per cent of this?
Or does it vary?

It ranges between 19% and 25% depending on the amount of profit the company made. You can use this HMRC calculator:

https://www.tax.service.gov.uk/marginal-relief-calculator

Thanks so mcub 🙏🙏

You pay tax on PROFIT so you first need to deduct all of your expenses. Forgive me if the £30k is your profit figure. It will be at 19% and then if you take any dividends as personal payment, you have to pay tax on them too - do you have any other income? Most company directors pay themselves £12,570 which is 0% tax. Then you get £500 0% on dividends. And then pay 8.75% on the balance.

So £30k has come in - what has gone out? You pay tax on your net profit but an accountant would need to advise you on which expenses are allowable as deductions and which are not. They would also need to take into consideration any assets you introduced into the business. The business will pay corporation tax on profits.

If you have been taking money out of the business to pay yourself, you will pay income tax on those earnings over your personal allowance.

Since this is your first year of trading and you don't know what you are doing, you really must get an accountant to file your Ltd Company statutory accounts, and calculate your personal taxation as well.

When did you set the company up and when was your company's financial Year-End?

I don’t know what your business is. But if, for example, you make cakes, then costs of ingredients, costs of kitchen hire, equipment purchase, setting up a website, attending local wedding fairs, printing leaflets etc would all be fine to deduct from sales before calculating profits.

Anf consider changing accountant if they don’t get back to you!

So helpful

Thanks all

I sent these questions to my accountant

I wish he would communicate more at the start I told him this was all new to me and I need a lot of help 🤦🏼‍♀️🤦🏼‍♀️🤦🏼‍♀️

You sound like you need a new accountant.

You may need to consider finding an alternative account...ASAP

Rang a new one today

Thank you all