Quote ="BartonFlyer"Sorry - What tax bill? - if a company is making a loss then there is no corporation tax to pay
There will be Income Tax & NI from the wages, but that (apart from the employer's NI contribution) will have been deducted from the wage itself
So I ask again - What tax bill?
It may of course have been used to reduce the overdraft and any relience upon the robber baron banks.'"
A company may deduct Tax and Ni from your wages but that does not mean that they have paid them to the taxman straight away, some pay monthly some 3 monthly and some 6 monthly. Most peoples wages are paid straight into a bank account so there is no actual cash involved just a number, at this point your deductions are just a number until the bill is settled, so no cash has been "deducted" a number of sports clubs delay paying taxes until other revenues come in. The most famous being Leeds United and we know what happened to them. There is also a Tory policy to encourage and support new businesses and ones in trouble by allowing a tax holiday where the company will still deduct the Tax from your wage but can reinvest in the company, which means you would be a shareholder, I don't think the tories have realised this yet, of your company. So Salford settled the tax bill early and keep overdraft costs down through the months of low income.
Lesson plan "your wage packet and who takes what?"