Money on the account and Corporate Tax

Archip

Registered User
Messages
6
I have a limited company which ended up with having some cash after paying all taxes. The cash isn't a profit by any chance, it's rather a reserve built by saving heavily and living on a tight margin throughout the year. Looks like I'm going to be taxed 12.5% for building this reserve - what options do I have here - pay off the cash as a salary, close the company and exercise 'Compensation for loss of office' anything else?

Thanks.
 

torblednam

Frequent Poster
Messages
517
I don’t think you understand what a profit is, what you’ve described seems like the very definition of profit.

Profits are how reserves are generally built up in a company.

And trading profit is generally what is taxable at 12.5%. QED.
 
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