How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 10369
Type Your Tax Question Here...
bigduckontax is online now

How r u? I wanted to ask. If my business is operating as a

This answer was rated:

hello sam - how r u?
JA: Have you talked to a tax professional about this?
Customer: I wanted to ask. If my business is operating as a consultant and receives a commission fee for each item purchased. And there is another company in Austria that I must split commissions with. Does this mean that I will be taxed for all amounts coming into my UK account Or will they deduct the commission owed to my partner in Austria?
JA: Which tax year is the deduction for?
Customer: contracts are being signed and business should take place over the next 15 weeks so this year
JA: Anything else you want the Accountant to know before I connect you?
Customer: no thats it thanks

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

The payments to the Austrian company form part of your cost of sales and thus will not be exposed to UK taxation. You will deduct these costs before declaring profits for tax.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thank you for your answer. So I confirm that even though a UK based company wires me the total commission amount, I will not be taxed for the amount due to the Austrian company. Will they have any questions for me when I transfer this amount out of the UK to Austria? The agreement between both parties clearly states the distribution of commission between both companies and we will have access to receipts that prove the commission we are both entitled to.Will this suffice?Thanks,

Thank you for your support. r

The way I would handle this is when you receive the fees post them to 'Fees received' and at the same time post a creditor to the amount of the amount due to your Austrian contact. Then when you close down your accounts the profit will reflect the liability to your Austrian colleague.

Customer: replied 1 year ago.
Many thanks! Makes sense!
Customer: replied 1 year ago.
Last question. Can you please confirm corporate tax I am liable for?After sending amounts to creditor in Austria - I have a net profit of:
80 K GBP
90 K GBP
100 K GBP
200 K GBP
Customer: replied 1 year ago.
in a % would be fine

19% in each case has been since 2015 and was 20% before that. You may not be aware that the UK is considered a tax haven because of its low rate of Corporation Tax.