Starting up a business?

Question

If i start a business and do not make any money do i have to pay the government anything?

If I do recieve any money from customers how much do i have to pay the government?

Would i be able to claim tax back on purchases to help my business even if i do not get any customers?

Answer 1

You'll have to pay taxes on the profits, so dont have any, when you get to the end of the year, just buy stuff so you show a loss.

You have to pay sales tax, to the govt thats all

and your last question an accountant will have to answer

Answer 2

Hi, let me make you understand a simple points,

Goverment collects taxes, from your income, to improve social infrastructures in your country, therefore goverment take a portion of your income in form of tax to do social work, therefore, when citizen of any country, work, goverment ask employers and businessman to deduct a portion in % from their income. So this applies same to business. When you are in business, and you are making income from that business, goverment will ask you to deposit a portion of your income into their account in form of tax. Please note, goverment only ask you to deposit tax from your profit in business, not on income you generated,Profit is All income less All expenses, what is left, then goverment will deduct a portion of that profit as tax.

So If your business income is $100 and your expense is $90 then your profit is $10. and if goverment deduct tax @10% then you are required to pay $1.00 to goverment. as $10 is your income ( technically your profit).

and  If your business income is $100 and your expense is $100 then your profit is $0. and if goverment deduct tax @10% . here now you are not required to pay anything to goverment, as you have not earned anything from your business.

Tax rates varies from country to country and depends on income slab of that country, as you have not mentioned your country, its not possible to answer this. you can check this back with your state goverment.

You can claim tax refund, according to your income tax slab.

this is not a legal advice. please note this.

regards

MIKE

Business Consultant, Moneybulls.com

http://www.moneybulls.com

a Business promotion company

Answer 3

Well it depends. If you setup your business in SEZ then you are bound to pay the government something depending on the contract you have drawn and agreement signed. It could be you pay them in one go or in installments.

As far as the tax is concerned. It really depends on the revenue. So if no revenue is generated then where is the need to pay tax.

If i got your other question right i think you were asking on tax returns on your assets ( or other purchases to set up the business). Yes in rare cases you might get a break but u will have to compensate for it in coming years. But most of the time i am sorry to say that you will not get any tax returns on the assets.

ie when i am talking about assets i am talking about Land owned, Buildings.

Answer 4

Depends on your product a lot. Find out first of all if you will need to pay VAT. This is a charge usually stuck onto your mark up, but it will be the same at your suppliers end so the gov gets the 14.5% but you offset that with your selling price. You will have to pay business tax on profits you declare but not unless you make any money. There may be business rates to pay to your local council, and they would have to tell you what they are. Give em a call and find out. Many local councils will help you out with loans and grants to get going whilw money is tough at the start. Best thing to do though is pick up the phone and make friends with some council chaps and get the inside scoop. Hope this helps and good luck following your dream

Answer 5

You have to make more than your personal allowance before you pay any tax

The government collects vat on purchasing stock

the vat on purchases can all be claimed back. contact your local inland revenue office.