In business, your profits are your reward for your endeavours. In fact, profitability is one of the essential measures of a business’ success. Profits are the very lifeblood of a business.
They fuel growth, support the owners, provide for the well being of the staff, and ultimately determine the success or failure of the business. So how can you increase your profits?
There is sometimes a general presumption that dividends may be paid out of any cash that happens to be in the bank account at the time. But it’s nothing like so simple as that.
The Companies Act 2006 sets out exactly what documentation is required for forming a company, and it is very different from that which was previously needed.
The main rate of corporation tax is currently 19% and it will remain at that rate until 1 April 2023 when the rate will increase to 25% for companies with profits over £250,000.
There are many situations where a business would benefit from expansion. Whether it is because of increased demand for a service or product, adapting to your customers’ changing needs, or branching out into a new area, it is important to weigh up both the advantages and disadvantages of growing your business.