17.10.2014

Are you afraid of the brown envelope?

 Show Interest

Are you afraid of the brown envelope?

 Show Interest

SMEs trading as limited companies will know that the corporation tax due on the company’s profits are payable in one instalment nine months after the year end. Thus if the company financial year end is 31 December, the tax is due by 30 September the following year.

It would be foolish, however, to put the tax bill at the back of your mind, only to worry about it nearer the time payment is due.

The prudent thing to do is to prepare regular management accounts, say every month, and certainly at least quarterly, which not only quantify the business’s profits earned to date, but also provide for the tax due on those profits. This enables the owners of the business to establish what funds are available for them to take out of the business without taking monies which should be already earmarked for paying the tax bill when it comes.

 

This approach does not make one look forward to receiving that brown envelope when it comes, but it does take away some of the pain!

I provide online accountancy services for owner/managed businesses which enables my clients to concentrate on their money earning work.

Accountancy

How small businesses can make a profit out of the VAT man

Businesses with a net turnover of less than 150,000 and who are VAT registered could increase profits by applying to…

More Articles

Legal

Surviving Valentines Day - going through a Divorce or...

It might seem cruel, but statistically a lot of couples break up around Valentine’s day. We tend to see a rise in…
Media

Jim's Revenge by Andrew R Williams

Jim Godwin was a man who tried hard to live an honourable life. All he wanted was a part-time job to put a bit of money…
Employment & HR

Mental Health: The Dirty Secret Nobody Talks About

Mental Health is the rising star in many health and safety circles. It has not yet reached the peak because there is so…

Would you like to promote an article ?

Post articles and opinions on Manchester Professionals to attract new clients and referrals. Feature in newsletters.
Join for free today and upload your articles for new contacts to read and enquire further.

Find the right professionals in Manchester

View The Full Index

Search By:

Submit your Enquiry here

Enquiry Details

Contact Details