cc taxation?

[Dave A]

Welcome Shenku.

It's not quite as bad as that.

You can draw a salary, which is an allowable expense of the cc.
This means what you draw as a salary will be taxed in your own hands - not in the hands of the cc.
Any profit left in the cc will be taxed in the cc's hands.

If, after the cc has been taxed and you still have distributable profits (extra cash available to pay to members), you can pay that money to yourself, but it would not be deemed as taxable income. Currently though, that payment would attract something called Secondary Tax on Companies - which is something the cc would have to pay. However, this could all change as soon as the next budget speech.

Ultimately, being tax efficient is about using these various methods of extracting money from the cc to get the most possible money in your hands whilst paying the least amount of tax. And of course still leaving enough money in the cc for it to keep going the following year.

Working out exactly the best way to do this is why you would be well advised to find a reliable accountant to advise you on tax affairs.

[SilverNodashi]

If, after the cc has been taxed and you still have distributable profits (extra cash available to pay to members), you can pay that money to yourself, but it would not be deemed as taxable income.

..... or you could share some of it with me