The Small Business Tax Help Blog

Archive for February, 2009

Question: Most tax efficient way of closing a Limited company due to lack of new business ?

Looking to close a contractors company over the next month, it currently has around £15K in it and a corporation tax liability of around £5K at end of May. Can you please give me ideas of minimising the £5K liability, should I be taking a dividend, a high salary – (say £5K) for a month in new tax year (after April 5th), or there is a £9.6K capital extraction available at closing which is tax free apparently. Any advice greatly appreciated.

Many thanks

Michael

Answer: The CT due is based on the last accounts, and the liability is fixed. On cessation you can claim any loss against previous year's profits. Dividends are not tax deductible. talk to your accountant.

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Tax Tips & Advice : How to Give Tax-Free Gifts

Question: Is Keynesian economics rooted in legal counterfeiting?

Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and therefore advocates active policy responses by the public sector, including monetary policy actions by the central bank (the federal reserve) and fiscal policy actions by the government to stabilize output over the business cycle.[1]

http://en.wikipedia.org/wiki/Keynesian_economics

In order for the government to spend money, it must tax UNLESS there is a central bank. In that case, you can just print as much money as you need. (Which is basically what we’ve been doing since this Keynesian economic theory entered America)

Answer: This theory essentially lines up with Marxist or Communistic ideals, which express a fundamental need for central banks. And printing money out of thin air, which is what the Federal Reserve pretty much does, is fraudulent and like you have termed it "legal counterfeiting." We're paying debt with debt, makes no fiscal sense does it?

Hoiles: Dynasty to bankruptcy

They could have been millionaires, many times over, in 1985 when a million dollars meant something. But 25 years ago, the majority of the Hoiles family, owner of The Orange County Register, spurned a $1 billion buyout of the Santa Ana newspaper and...

What is the definition of R&D and how does a company claim tax relief on it?