Corporation Tax was something we both knew about, but didn't think it would be quite so unpleasant.
It's a tax on taxable profit, and we thought that as in our first year's trading we hadn't really made a profit, this wouldn't affect us too much. Ah...but 'taxable' profit is different to normal profit isn't it, so things like our stock holding were counted as assets. This meant that we'd effectively made quite a healthy profit and were therefore liable to a stonking great tax bill.
And I do mean stonking.
We're paying 3 months rent as well this month, and of course our accountants, who were the bearers of the bad tax news need paying also.
Spare some change guvnor'
alternatively you publishers could offer us extra discounts and extended credit, and customers could decide now's the best time to buy all those books you've been promising yourselves. Oh, and all you schools who owe us money from the end of last term, maybe now's the time to find a pen that works.
Or you could send us your spare change.
In happier news, Katie and I are expecting our second baby on February 20th. So nothing else matters really.
congratulations! :)
ReplyDeleteI promise I will visit the shop and spend all my money soon x
Yay! Katie told me on Saturday. Freya is an utter delight so another one of her will be most welcome I'm sure! X
ReplyDeleteDid your accountant not suggest that you send a nice letter to the corporation tax people setting out a payment plan over the forthcoming months to pay the tax up, probably not. My friends accountant didnt either. They will add some interest but it helps with the cash flow. I know of two companies who have done this and are paying up the corporation tax over 6-9 months. And the governemnt have said that small business should be supported and i'm sure you may be surprised how easily this can be arranged.
ReplyDeleteContinue the good work guys.
Congrats!! :D
ReplyDeleteCongratulations on the new babe!!
ReplyDelete