The company made 45k profit , I have a set wage of £500.00p a month to be under the tax limited . What confuses me is that if every time I get a payment and 20% is deducted every time why am I paying another 20% in corporation tax . This means I am paying 40% does it not .
I am on paye with the wages but the company gets taxed 20% on all earnings . I never changed the tax deduction scheme when I made the company LTD . I preferred this as I would always get a rebate and never owe any tax . The inland revenue know they owe me a rebate but I was thinking that the corporate tax was very high .