new to this.

[Johnboyle7]

Hi guys was looking for some help, I have started trading under my ltd company this week.
i sent my first invoice and I have recieved payment.

£2295+VAT = £2754 paid into my business account

So I have set up a savings account to put my VAT and corp tax into.

I know I have to put the £459 away but unsure on how much corp tax to put away.

There was no costs for materials or any outgoings, only profit as it is labour only.
breakdown is
Labour £1995
and £50 per day for using our van = £300

how much should i put away into the savings account for corp tax ?

Thanks John

[jpcentral]

You would be very safe putting 20% away because that should considerably exceed the profit.

Corporation tax is 20% of profit. Your profit is your sales (£2,295) less allowable expenses. You mentioned a van so presumably the company owns a van on which it will claim either AIA (Annual Investment Allowance) or WDA (Written Down Allowance) plus running expenses (fuel, insurance, road fund licence, servicing etc). You may also have been advised to pay yourself a salary which will also reduce your taxable profit. There may also be premises costs, even if only for use of home and phone costs. If you are issuing invoices there will be stationery costs and, probably, computer costs.

It isn't actually possible to give a definitive percentage because this will depend on the turnover and what expenses are actually applicable to your business. We tend to suggest around 15% for a substantially labour only business with the proviso that this could be quite a bit adrift, especialy if sales are high.