Our sole trader product has had a tax estimate that works out your personal tax liability as a sole trader. But for limited companies, we don’t have this yet.
We’d like to add a corporation tax estimate for limited companies.
Corporation tax is calculated as 19% on your company’s profit. This is due to drop to 17% in April 2020. The calculation works based on your financial year.
If your financial year goes over the period where the rate changes, then your profits are spread evenly over the year, and the relevant rates are applied.
We’ll present the tax estimate in a Tax tab in the app, along with details of the calculation.
Does your financial year run for 12 months each year, or do you ever change it?
How do you keep track of what you owe for corporation tax, do you set it aside?
And what about the personal tax you owe as a Director of your company, how do you handle that?