company tax year

bosscat

Hi , the end of my first year as private limited company is approaching, I hope someone can help -

if my company tax year is September 1 to September 1 , when must I pay any company tax?

Is there any point in leaving money in the company to be taxed at 12.5% , ( i know PAYE is 41% ) if all really do is pay myself anything the company earns?

Also , if i wanted to pay no company tax , and take all company earnings as salary, must I pay myself before the end of the company tax year?

thanks for any help

Snowdrop

Hi

Generally you will be obliged to file accounts and pay tax within approximately nine months of your year end depending on when in the month your year end falls.

It is hard to give you tax advice without knowing the amounts of profits involved. Just make sure you claim all the expenses you can as this will reduce your tax liability.

You could technically accrue costs such as salary, expenses etc without actually paying it out during the tax year. Again this is general advice as you need to base your decisions on your own circumstances. Feel free to PM me if I can be of further assistance.

Snowdrop

Snowdrop wrote: »

Hi

Generally you will be obliged to file accounts and pay tax within approximately nine months of your year end depending on when in the month your year end falls.

Don't forget preliminary tax. This may apply if profits are above a certain level. OP if you haven't done so already, you should go to www.revenue.ie, and check out the 'information for businesses section'. I'd also recommend consulting an accountant / advisor..

bosscat

thanks for all the advice guys.

sawilson2003

bosscat wrote: »

thanks for all the advice guys.

You should have paid any preliminary tax by the 21st of July. (presuming your year end is 31/08/08)

With regards to reducing your profits by paying them as salary, the main thing i could see it that you will then not show any profit, this wont help much if you are ever looking to get finance, or sell the company.

MartMax

sawilson2003 wrote: »

With regards to reducing your profits by paying them as salary, the main thing i could see it that you will then not show any profit, this wont help much if you are ever looking to get finance, or sell the company.

you'd only get the additional salaries as deductions for tax purpose, provided you physically pay the salaries within few month after year end (i can't remember the exact period). it means that the additional pay has to be filed in the P30 or P35 within that time window.

pigeonbutler

Be sure to get professional advice on this. Close company provisions might apply.