Video Blog | Profit & Cashflow

Accountants In Dunfermline, OnTax, Ask
What Is Profit?

Accountants In Dunfermline

OnTax Accountants In Dunfermline , are going back to basics today to discuss profit. You may have wondered: What exactly is profit? How is profit calculated? When does profit happen? The answer to these questions and more is discussed in the video blog below as well as briefly in this article.

Many years ago a client asked us here at OnTax Accountants in Dunfermline a question that absolutely floored me! There I was discussing the clients profit and loss report with them when they turned to me and said “see profit…”, “yes… i said..”, “is that what i take out the bank and go and spend?” they asked. Well, knock me down with a feather, in fact we just about had to order an ambulance to come to OnTax Dunfermline Accountants to resusitate me! Here is someone with a turnover approaching £300,000 wondering if it was compulsory to take the profit out the bank every month and go and spend it, no doubt in the fashion shops!

This event, which really did happen here at OnTax Accountants in Dunfermline, highlights the many misunderstandings clients have about profit. So, over to the video blog now for a quick explanation of what profit really is.


Accountants In Dunfermline, OnTax, Answer
What Profit Is And How To Identify It

Accountants In Dunfermline

Hopefully, you have now had the chance to see the video blog above from us here at OnTax Accountants in Dunfermline and understand the profit concept a little more. As you will have seen in the video, when credit terms are involved it does not change how much profit has been made or even when it is made, the credit terms simply alter the monetary realisation of this money.

Accountants In Dunfermline, OnTax, Advice
Optimising Your Profit And Cashflow

Accountants In Dunfermline

In an ideal world, Ontax Accountants in Dunfermline would advise that you always have enough stock on hand to be able to attain a sale, nothing worse than turning a customer away due to lack of product to sell them! To maximise your cashflow you need to get your sales money in as soon as possible and to pay the suppliers as far in the distant future as you can, without upsetting them! For more detailed advice please call us here at OnTax Accountants In Dunfermline and we will be happy to help.

Disclaimer: The advice contained herein from OnTax Accountants In Dunfermline is subject to the tax rates and law applicable in the UK at the time of writing. No reliance should be placed on this article from OnTax Accountants In Dunfermline, which has been written from an anecdotal perspective. Always obtain written advice for your specific situation from a properly qualified professional at OnTax Accountants In Dunfermline.

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Deadlines For Individuals

31 Mar - End of tax year.

31 Jul - 1st payment on account due.

31 Oct - Deadline for submission of paper personal tax returns.

31 Jan - Deadline for online submission of personal tax return and any o/s tax including 2nd payment on account.



Deadlines For Ltd Companies

31 Mar - Most companies have 31st March as their year end.Time to finalise your book-keeping entries!

31 Dec - Deadline for paying corporation tax. This is also the deadline for submitting your corporation tax return if your year end is normally 31st March.



Personal Tax Rates

2014 - 2015
Tax Free Amount: £10,000
Starting Rate 10%: £0 - £2,880
Basic Rate: 20% £0 - £31,865
Higher Rate: 40% £31,866 - £150,000
Additional Rate 45%: £150,000+



Ltd Companies Tax Rates

2014 - 2015
Small Profits Rate: 20%
Small Profits Theshold: £300,000