A quick question about corporation tax if I may. Did the end of year
stuff with my accountant, and was too shocked at the huge amount of
this years Corp Tax to really understand what he was saying, so will
check it here if you dont all mind.
Lets assume its Year1, and in year 1 I have figures of.....
Revenue = £100
Costs (all) = £50
Profit = £50
Therefore (keeping it real simple) I pay my 20(odd)% corp tax on the
£50 profit. Ok, fair enough.
Revenue (for the year) = £100
Costs (all, for the year) = £50
Profit (for the year) = £50
so in my simple way of thinking, thats again, 20(ish)% of the £50. But
if I got things right, my profit is not £50 for year 2, becuase I have
cash going forward (the Y1 £50 minus the corp tax), so I have say £85
profit Y2 - so pay 20(ish)% of £85?
Is this right? In which case, I am paying tax every year on the same
does that make sense? Am I correct?
(PS. Please be kind in your replies, I am not an accountant).
- posted 10 years ago