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A company’s tax adjusted trading profit before taking account of director’s remuneration is forecast to be 175000. All of the profits are to be extracted (after allowing for corporation tax). Director’s remuneration is 8000.
When calculating the taxable total profits, will the employer class 1 nic be deducted from 175000 or employer class 1 nic has already been deducted from the tax adjusted trading profit of 175000. So the only thing to deduct is director’s remuneration. What is the assumption. Is the tax adjusted trading profit figure assumed to be after deduction of class 1 employer nic or is it before deduction of class 1 employer nic.
TTP in the question should tell you whether the figure is before or after remuneration of £8000.
Any further withdrawl of the profits after tax will be by a dividend surely?
Where is the question from please?