Hi all,

Apologies if this is the wrong sub for this question, but I’m looking for some advice regarding corporation tax in the UK.

I started a very small online part time 3D printing business about 3 months ago. I understand I am eligible to pay 19% corporation tax when I submit my tax return, but I just want to make sure I understand exactly how profits work.

Say I make £500 in a month, but choose to buy a second printer for £450. Do I need to keep 19% off the £500 i made aside for tax, or just the £50 profit that was actually made that month.

I started the business a means to pay for my hobby and upgrade my machine overtime, which it has been able to do rather successfully. So I don’t currently pay myself a salary or anything, all profits go back into buying better equipment for my business but also personal use.

Thanks, Ash

  • ResinseerBEnglish
    1·
    1 year ago

    How is your business structured? Are you a sole trader doing Self Assessment? Or did you register a limited company with Companies House?

    If you have a Ltd. company, you really should be engaging the services of a professional accountant, and filings for Ltd companies can cost over £1000 per year in accounting fees - but making a mistake when doing it yourself could be even more costly. If you are just doing a small side gig printing business (I have a Ltd company making plastic hobby kits and 3d ptinting so I know your industry) then a limited company is just expensive and not worth it especially if you are not VAT registered.