did you start with the partner and now work with the junior?
Many new clients complained to us that when they started with the old accountant they dealt with the partner but now a junior member of staff handles all their needs. At Inca we assign a dedicated relationship manager to all our clients. It's part of our commitment and philosophy.
business tougher?
If you're a sole trader and business has shrunk due to the economic situation, it might be possible to lower your payment on account in July.
hints and tips
Remember that dividends are paid after allowing for Corporation Tax
Many people make the mistake that corporation tax is only due when they draw dividends. This is incorrect. Corporation Tax is due on the profit of the business, irrespective of whether any dividends are drawn. It is currently charged at a rate of 20%. As an example, a company making £100,000 taxable profit would pay tax of £20,000, leaving a remaining profit of £80,000 for dividends.
It doesn’t matter if you draw £10,000, £30,000 or £80,000 in dividends, the company's tax bill is still the same. Another common mistake is to assume the tax is paid on the dividends drawn e.g. if you draw £50,000 in dividends, then you pay corporation tax of £10,000 (20%).
As a general tip, having worked out your profit (sales – costs), take off 25% as a cushion for tax and any unplanned expenses at the year end. The remaining 75% could be taken as a dividend.
need a business plan?
We have a free sample of showing the items to address in our resources section.
rather go to the dentist?
Have you ever felt intimidated meeting your accountant? At Inca we try to make you feel relaxed dealing with us. No suit and tie, no time limit for the initial meeting and no charge for it either. It's part of building a relationship together.
