Natwest business bank account

[village idiot]

OK, let's say you make a profit of £20,000, then decide to spend that on various business expenses. It becomes a business expense, so no tax due. But, pray, tell me. How does that improve your cashflow or where is money left to go on that luxury cruise?
Just because an expense is tax deductible does not mean the spend is good business acumen. I am better off spending that money on breakfast at McDonalds. Still tax deductible and appropriately used

 

[kay-jay]

There seems to be some confusion here.

As an example.
If you have done your yearly accounts and you owe the tax man exactly £1000
And then you remember a business expense of exactly £1000

what do you think your revised tax bill will be?

 

[rocketmanbkk]

Is it the case that any profit you pay into a personal pension comes off your tax liability?

Do for example, if the tax level is £10k and you make £15k, can you pay £5k into your pension and pay no tax?

Figures are examples only and your money is locked away until 55? Although I think there are rules coming in stating you won't have to buy an annuity.

??

 

[village idiot]

There seems to be some confusion here.

As an example.
If you have done your yearly accounts and you owe the tax man exactly £1000
And then you remember a business expense of exactly £1000

what do you think your revised tax bill will be?

Your revised tax bill will be ZERO. Nothing to pay

 

[Ermintrude]

£800 if they revise it within two decades

 

[kay-jay]

Your revised tax bill will be ZERO. Nothing to pay

800 you only get releif on the grand at tax rate.

 

[Nostrum]

This is a common misconception that baffles me, how people are running a business and don't understand the costs or benefits.

if I buy a new £400 drill, HMRC don't refund me the entire cost (unfortunately), they allow me tax relief on its value which is offset against my profits.

So, the drill cost me £400.

I get tax relief on the value of the drill, in other words I don't pay tax on £400 of profit I have hopefully made in that period.

The equivalent tax at 20% on £400 profit is £80.

HMRC don't rob me of £80 but the remaining £320 is being paid for by? Me.

 

[Nostrum]

As for Nat West, watch the fees after 2 years. I bank with them for everything but I had to phone them and enquire about a better tariff for my business as they were stinging me for a fair bit, direct debits, online transactions etc.

 

[Ermintrude]

Yeh we were done over by CBS few years ago then stupidly moved to Barclays!

 

[Irish]

Yeh we were done over by CBS few years ago then stupidly moved to Barclays!

sweet lord jesus what in the feck possessed you to go to them tosspots

 

[village idiot]

Yeh we were done over by CBS few years ago then stupidly moved to Barclays!

like jumping from frying pan to fire