Taxable turnover is the turnover on which the seller is liable to pay tax.
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How do I reduce corporation tax?
You can reduce your corporation tax bill by:
- Claiming your business expenses
- Paying yourself a salary
- Taking advantage of HMRC's incentives for early tax payment
- Taking advantage of tax allowances and reliefs
What are Invoice numbers?
An invoice number is a unique number that is assigned to each invoice. This number is one of the most important elements of every invoice. Its role is to identify transactions, so it needs to be unique. Invoice number can contain only numbers or letters and numbers. It may contain date of issue, name of project or task.
What are Credit Notes?
A credit note is a document that a business issues to its customers. It is used whenever an invoice needs to be changed and re-issued, such as when a customer changes or cancels an order, or is charged an incorrect amount.
What are Debtors?
The term ‚Äòdebtor' refers to an individual or company that owes money, or is in debt to an individual or organisation. An example would be a customer that has purchased a product or service from your business. In the balance sheet, debtors are listed under the current assets section.
What is a Company Tax Return, CT600?
All active limited companies in the UK are required to file a company tax return, otherwise known as the CT600 form.
The CT600, along with supporting documents are submitted to HMRC annually to report a company's spending, profit and corporation tax to HMRC.
What are Supplier References?
A supplier reference (or trade reference) refers to a report detailing the payment history between a business customer and its supplier or vendor. It enables a supplier to check your creditworthiness and find out if you're a reliable customer before they offer you credit.
What are Assets?
An asset is any resource that is owned by a company. There are two main types of assets: current assets and non-current assets. Current assets are expected to be consumed within a year, while non-current assets are expected to be held for longer than a year.
How do I pay Corporation Tax?
There are various ways you can make your corporation tax payment:
- Same day or next day payments: CHAPS, online or telephone banking (Faster Payments)
- Three working days: BACS bank transfers, Direct Debit, debit or credit card payment online, payment at a bank or building society
- Five working days: Direct Debit (if you haven't set up a Direct Debit previously)
Your Balance Sheet and Profit & Loss explained
Here's where our article comes in, so you can quickly get a grip on the basics.
What is a Profit & Loss Account?
The profit and loss account (P&L) is a financial report that shows the revenue, expenses and profit or loss of your company over a specific accounting period.
This period can be a month, a quarter or a year. A P&L is also commonly referred to by other terms, such as the income statement, statement of operations, financial results statement and earnings statement.
What is an Annual Return?
An annual return (AR01) is a document that all businesses are required to submit to Companies House each year. It details general information about a company, such as its ownership, capital position and management. The annual return has been replaced by the confirmation statement (CS01) since 30 June 2016.
What are Cost of Sales?
The cost of sales is the accumulated total of all costs used to create a product or service, which has been sold. The cost of sales is a key part of the performance metrics of a company, since it measures the ability of an entity to design, source, and manufacture goods at a reasonable cost.