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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4423
Experience:  FCCA FCMA CGMA ACIS
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I have recieved an exorberant corporation tax bill from my

Customer Question

Hi I have recieved an exorberant corporation tax bill from my accountant so essenyially my profit was 99697,
they want 19939 corp tax
13,448 ct on directors account and
12,000 on dividend based on 48k
is this correct
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

I regret to have to tell you that it looks correct to me with Corporation Tax (CT) at 20%. Dividends do not count against company profits in the CT computation and the level of the Director's Loan account is an irrelevance.

I regret that the company will just have to bite the bullet and pay.

I am so sorry to rain on your parade.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
thank you, ***** ***** first year so a difficult pill to swallow
Expert:  bigduckontax replied 1 year ago.

Yes, not very nice I agree, unlike the 7p, yes seven pence, CT bill I once saw issued by the Inland Revenue!

Remember that you can reduce the CT bill by the company making contributions to your private pensions plan.

Thank you for your support.

Customer: replied 1 year ago.
thank you
Expert:  bigduckontax replied 1 year ago.

Delighted to have been of assistance. I paid that 7p t the Post Office. The Postmaster roared with laughter pointing out that it would cost a small fortune to process!