As a small business owner, receiving your report card from your accountant can be an exciting and nerve-wracking experience. While it's always great to see your business's financials laid out in front of you, finding out how much you owe the government can be a daunting task, especially if you're struggling to make ends meet during the pandemic. Paying taxes is a necessary and often frustrating part of business ownership, particularly since small businesses are often double taxed due to the fact that we have to pay taxes on both our salaries and dividends.
This can be a difficult situation to navigate, particularly if you don't have personal assets to cover the tax bill. Moving money around as a dividend might seem like a quick fix, but it can quickly turn into a never-ending cycle of trying to stay ahead of the tax man. As a result, it's important to plan ahead and make sure you have a solid understanding of your business's financials so that you can avoid getting caught in a rat race of constantly trying to play catch-up.
First Action Open the email from the accountant
Understand the numbers for the corporate tax
Turn over and the profits are different
The main numbers are holding up and there is the depreciation is there and the staff costs are there.
Check the higher rate of the taxes