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[cam2502]

Hi guys. Can anyone answer this question please? Can anyone tell me approximatly how much tax a small business with annual sales of 64k per year,and a net profit of 21k should be paying? Also, If the tax is fully paid by the end of January, should there be another tax demand in July?
 If it makes a difference there is 3 full time employees,whos paye and ni contibutions are paid monthly.

Any information would be greatly appreciated.

[pscocoa]

is this a limited company?

[davethediver]

Corporation tax is at 20% i think, depends on how long business has been trading as it may not all be due in jan

[cam2502]

not a limited company. sole trader

[tidla]

tax paid by end of feb i think, then an estimated half tax in July. new fines for not coughing up on time .As said 20% on earnings above tax code.

[pscocoa]

you will pay tax on the profits as income - if you were a limited company then as said there are lower small company options.

Not easy to give general answers on this as lots of ifs and buts....

see link below also

http://www.rossmartin.co.uk/index.php/starting-in-business/140-sole-trader-v-limited-company-key-tax-a-legal-differences

[Nickbat]

not a limited company. sole trader

I'm a sole trader. Tax must be paid by 31st January. Second tranche by 31st July.

You must have an accountant, surely! 

[Nickbat]

.. and sales are irrelevant for tax purposes. It's only profit that is taxable. 

[Nickbat]

..and the end-July payment is on-account payment for 2011-12. Any over- or under-payment will be sorted in the January 2013 demand. 

[MaxV6]

a bit vague really.....    is the net profit actually that??   if so, around 3 grand in tax , tomorrow. .....


or,   are you quoting the difference between cost of stock  and the turnover?

in which case there's probably all sorts of bits to take off before arriving at actual taxable profit.  (allowable expenses, such as most of the overhead costs)

[Taxi_Driver]

not a limited company. sole trader

I'm a sole trader. Tax must be paid by 31st January. Second tranche by 31st July.

You must have an accountant, surely! 

End of Feb actually, to avoid getting stung with an interest payment as well  so my accountant told me. However being the good boy that i am, ive just phoned HMRC (because their bloody website wont take a payment  ) and paid mine  or should that be 

[paul.lovejoy]

a bit vague really.....    is the net profit actually that??   if so, around 3 grand in tax , tomorrow. .....


or,   are you quoting the difference between cost of stock  and the turnover?

in which case there's probably all sorts of bits to take off before arriving at actual taxable profit.  (allowable expenses, such as most of the overhead costs)

sounds about right  3k but as said so many thing you can claim for and loose out on interest on loans, capital tax allowances the list goes on.....i used to have an accountant until this year decided to do it on line myself not as bad as i thought lots of info etc but next year will be learning sage instant accounts just a matter of putting in figutres etc and for about £100 cheaper than an accountant sage also do a cheap payroll programme for small businesses thats not to expensive.

if in doubt try this inland revenue site very good

http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&topicId=1073858808

hope this helps