hi just a quick question, i own a limited company and we have just gone over the VAT threshold so will now be registering for VAT, my business is very competitive and my prices will have to remain the same otherwise i will have no customers so unfortunately i will be paying the VAT out of my profits
my question is, my corporation tax is %20 the vat is %20 and after ive paid it to myself in dividends and i go over the 40% tax threshold i will be charged at 45% doesn't that mean that anything after ive hit the 40% threshold i will be paying 80% tax on that money?
e.g i will be taxed 60% on my income (corporation tax,VAT,Income tax) until i pass the 40% threshold and then il be paying 80%?
or am i working it out wrong?
thanks in advance
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