My company spent £1,000 on a pc and £20,000 on our website. Our other cost was wages and our total costs this year were £52,000. Turnover was £52,100 so we just about made £100 for the year. But our accounts have just been done and they show a profit of about £3,000. That shocked us. The accountant says that some of our costs have been capitalized so they are in the balance sheet and only some of the cost is really being counted against our profit. The corporation tax due on the alleged profit is more than the profit we really made! How can this be right?
29th Nov 2012 21:10