JohnSmith

Just trying to get my head around this

I have started up my own business (due to all previous shat from my old employers)

Anyway Bank Manager recommended I pay some money into the account to start things off (as he would do I guess LOL)

I transferred some money in from my personal account (of which I have already paid TAX, NI etc)

and now my business account is showing that I owe Corporation Tax on the money I have paid in

Is this correct, if so what a bunch of robbing b*stards the government is

Midlife......

iTrader: (2)

What sort of business account did you open?

We opened an account with Nat West and it appears to be nothing more than a current account with the cheques saying our name and then Trading as *company name*

Have you been in contact with business link etc and the Govt agencies promoting business about NI holidays etc ??

Shaun

Lee247

I think that money will be classed as a loan from you to the business. Your accountant will be able to sort that for you when he does your first years accounts. I am sure it will not be classed as owing Corp Tax unless you make a hooooge profit

JohnSmith

Its a Barclays Business Account, which also comes with a linked saver account for things like VAT & CT payments which is a good idea

It could be that I haven't assigned it a category yet from importing the bank statements

Lee, hooooge profit would be nice

Lee247

All the best Make a note of the amount and make sure it is a loan from you to the business.

JohnSmith

Thanks

I just changed the category from Sales / Interest received to Grant but it still shows as Turnover and taxable profit

There doesn't appear to be any other option unless I can create a new category for it

I will keep looking though need as much as I can get without tax man getting his chunk again

Lee247

It should be in the Balance Sheet somewhere. It's a Liability (if you know what I mean)

Midlife......

iTrader: (2)

Ah, you have set up a limited company then and are not a sole trader.......... I thought you only paid corporation tax when you posted a profit which IIRC is more than £10,000.

Shaun

JohnSmith

Managed to sort it now thanks

I found the monies in and found an option for user paid in. This in turn gave me an option to make it share capital or Director loan

Yes it is a Ltd Company

ramdor

iTrader: (2)

you should set it as a directors loan. Company is technically in debt until it has been paid back, and you'll only pay corp tax on profits after the loan has been deducted afaik. I am no accountant though as you might have guessed... lol.