Starting this month my client’s client stops paying him through his company and pays him as a subcontractor instead, directly into his personal account.
As it happens my client’s latest business accounting year is August 2020 to July 2021 so I felt it was time to give him a forecast of his future Corporation Tax liability.
His reply was this: “this surprises me as iv not long paid corp tax of £2600? And now my money is taxed like paye and paid into my personal account which I felt this means my business account is now inactive/redundant ?”
I replied that the fact that he is now self-employed doesn’t wipe out the profits he made through his company since August 2020 and that the £2,600 he paid recently was for the accounting year 2019/2020.
Is that not very frustrating when this happens?