What is your Profit for Tax
Episode 49 of the Simplifying Tax and Accounting from I Hate Numbers: podcast, hosted by I Hate Numbers, titled "What is your Profit for Tax" was published on January 31, 2021 and runs 11 minutes.
January 31, 2021 ·11m · Simplifying Tax and Accounting from I Hate Numbers:
Episode Description
What is your Profit for Tax is this week’s I Hate Numbers podcast theme. Last week we looked at how you should budget for your tax bill.
Firstly, your money in your bank account is not the same as your tax profit. Secondly, your accounting profit is not the same as your tax profit. However, they are both important numbers. It may sound confusing.
Listen to find out more.
How the tax authorities look at your business
In the words of Mark Twain "I shall never use profanity except in discussing house rent and taxes."
Firstly, when you look at how your business is performing, then profit is still a key financial measure. Secondly, you consider what you are doing to generate and earn those profits.
For example, money invested and spent on training, equipment looking after your customers and suppliers will all be relevant.
The tax authorities in the UK look at things differently. They are not entirely interested in how your business is performing. It’s tax they want to collect, and they have a different rule book to go by.
In this podcast I showcase some examples.
Listen to find out more.
Why your tax profit is important to know
Tax is an expense, and it is one you need to plan for an be aware of. How you calculate it is what we looked at last week.
In conclusion the numbers are easier to get your head around, once you know the reasoning. Let me tell you, there is reasoning,
Want a quick and easy way to know how much to pay? Use our free tax calculator, designed for the self-employed and companies? Get in touch with us to see how we can help you with your accounting and business needs. Press subscribe so you don't miss an episode of I Hate Numbers. For more business and finance, news, advice and tips.
In This Episode
- Appreciating What is your Profit for Tax
- Being aware of how your accounting profit is calculated.
- Understanding why your profit for tax is different to your business profit
- Examples of how different costs are dealt with in the accounts and for tax
- Developing your own Numbers confidence and decisions
- Take more control of your numbers to help make you money, survive and thrive
Links
https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288
https://play.google.com/music/m/I3pvpztpjvjw6yrw2kctmtyckam?t=I_Hate_Numbers
https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins
https://www.stitcher.com/podcast/proactiveresolutionss-podcast
https://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/
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