Profit and Loss

What with my man cold and other events before Christmas and then Christmas itself I've not got much work done in the last couple of weeks but today I made a first pass at the accounts for the year (our company year is the same as the calendar year) and was pleased to report to the board¹ that it looks like the company made a loss of about £80 on the year.

I always find this always slightly freaks out people who don't understand the way these things work but my aim since they abolished zero rate corporation tax has always to get the company profit as close to zero as possible. Last year we made a small profit, and paid a little corporation tax as a result. This year we'll make a small loss and (I think) that means we can claw back last year's corporation tax.

If you're still wondering what the point is if the company only made £80 in a year you need to appreciate that that's the nett profit after paying the staff² - then it makes more sense.

1. That's Beth and me.
2. That's me.