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Where Taxpayers and Advisers Meet

I ended up with 8k pretax profit

Poplaw
Posts:1
Joined:Tue Dec 21, 2021 12:59 am
I ended up with 8k pretax profit

Postby Poplaw » Tue Dec 21, 2021 1:03 am

I set up a company around this time last year;
I never expected to be profitable so I never paid myself a salary (or even registered for PAYE).
But I suddenly realised in the tax year that ended in October, I actually made a 8k pre-tax profit.
Is it too late to pay myself a salary/bonus etc to reduce corporation tax liability?
I have no made no other income last year so have the full personal allowance to utilise.

pawncob
Posts:4879
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: I ended up with 8k pretax profit

Postby pawncob » Tue Dec 21, 2021 9:14 pm

The tax year ends in April.
If it's the company's year end you refer to, you can make a provision for director's remuneration. (assuming you haven't already submitted the accounts).
With a pinch of salt take what I say, but don't exceed your RDA


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