My company (100% owned byme)earned about 20k in bank interest last year.
This was taxed at 25% by the Revenue -I know that we'd pay a higher rate for this than for "normal" profits at 12.5%.
So he 20k was really 15k .
but taking that money for greedy me means I had to pay full income tax on it -thus reducing it to about 8k.
The moral of this story is not to put company cash into bank interest earning accounts but rather managed funds which I used to do but got nervous this year.
Am I right ?
This was taxed at 25% by the Revenue -I know that we'd pay a higher rate for this than for "normal" profits at 12.5%.
So he 20k was really 15k .
but taking that money for greedy me means I had to pay full income tax on it -thus reducing it to about 8k.
The moral of this story is not to put company cash into bank interest earning accounts but rather managed funds which I used to do but got nervous this year.
Am I right ?