Hi Guys,
I like to withdraw all profits from my company as a combination of pension and salary before it's year end, leaving next to nothing in the bank, no profits and no corporation tax. It's also important that the abridged accounts show as little profit/bank balance as possible. My year end is the end of April, ie end of next month.
I need to place a large order for stock (the best part of €100,000) in the next week or two, which won't actually arrive till about 3 months time. Now if I place this order I think it will show up as €100,000 of stock at the year end and be liable to corporation tax? It will also show up on the abridged accounts as €100,000 profit which I want to avoid.
Is there a way around this? The way I see it, if the order was placed just after the year end it would not be an issue as the stock would be used up during the year and so gone by the end of next year.
But I kind of need to place the order now and probably pay 60% of it up front.
I was also thinking I could withdraw all profits from the company (as salary etc), loan the money to the company and then pay it back in a couple of months. This would leave me with €100,000 of stock but a debt of €100,000 also so no corporation tax but the large sums of money on the abridged accounts.
Can anyone think of any other way I can achieve what I'm looking to do, ie avoid corporation tax and preferably from having this sum of money appear in the accounts at year end. Pushing the year end date forward is sadly not an option.
Any help would be much appreciated!!
Thanks
I like to withdraw all profits from my company as a combination of pension and salary before it's year end, leaving next to nothing in the bank, no profits and no corporation tax. It's also important that the abridged accounts show as little profit/bank balance as possible. My year end is the end of April, ie end of next month.
I need to place a large order for stock (the best part of €100,000) in the next week or two, which won't actually arrive till about 3 months time. Now if I place this order I think it will show up as €100,000 of stock at the year end and be liable to corporation tax? It will also show up on the abridged accounts as €100,000 profit which I want to avoid.
Is there a way around this? The way I see it, if the order was placed just after the year end it would not be an issue as the stock would be used up during the year and so gone by the end of next year.
But I kind of need to place the order now and probably pay 60% of it up front.
I was also thinking I could withdraw all profits from the company (as salary etc), loan the money to the company and then pay it back in a couple of months. This would leave me with €100,000 of stock but a debt of €100,000 also so no corporation tax but the large sums of money on the abridged accounts.
Can anyone think of any other way I can achieve what I'm looking to do, ie avoid corporation tax and preferably from having this sum of money appear in the accounts at year end. Pushing the year end date forward is sadly not an option.
Any help would be much appreciated!!
Thanks