Not due to meet with an accountant until next month.
Would I be correct in thinking that I only pay tax on profits?
I only started in March so therefore not a limited company (yet), seems to me that you need something like 250 machines or mire to generate 78k or more Lol
Funny one is, a lot of companies value a business on its net profit, yet many an accountant will say a good business makes no profit when the books are done right.
Coin Operated Group wrote:Funny one is, a lot of companies value a business on its net profit, yet many an accountant will say a good business makes no profit when the books are done right.
On a turnover of £78K cost of sales £28k, GP 50K, commission £15K other overheads approx 12K (includes van 8K). This gives you a net profit of £23K. This is what you are liable to pay tax on. Against this you can offset any capital investments(machine purchases) made during the year, or to setup the business in the first year. lost or stolen machines can also be offset against the net profit figure. To grow a 'round' to produce £78k turnover should mean you do not pay any tax for the first three years or so.
