Paragon

[Chicken Balti Pie]

Tax efficiently of course. But that isn't my point at all. It just gets trotted out that making a loss is a good thing because it reduces your tax.

My question is simply this:

What would be best?
Making no loss and having to pay some tax.
Making a loss, reducing your tax bill but having to pay out the loss (less the tax bill)

If my boss said "We are going to pay you £10k less, but don't worry as it will save you (say) £2k in tax" I would have to look at it as £8k lost not £2k gained.

Wouldn't you?

The initial point I made was that Hardy is the majority shareholder of Paragon, it's profits can easily cover Notts loss and also allow for tax relief for the parent company. At no point did I say it was a good thing for Notts to lose money, I merely pointed out that there was a silver lining for Paragon to fund Notts rather than Hardy directly

[ncfcog]

Tax efficiently of course. But that isn't my point at all. It just gets trotted out that making a loss is a good thing because it reduces your tax.

My question is simply this:

What would be best?
Making no loss and having to pay some tax.
Making a loss, reducing your tax bill but having to pay out the loss (less the tax bill)

If my boss said "We are going to pay you £10k less, but don't worry as it will save you (say) £2k in tax" I would have to look at it as £8k lost not £2k gained.

Wouldn't you?

As a limited company, if you post a net loss in your accounts you get a tax rebate on your corporation tax. So in theory you could post a £10k loss and get circa £2k back from HMRC. Of course you can’t do this every year without raising a few eyebrows and it doesn’t do your credit rating any good but it certainly helps the cash flow.

[Old_pie]

Tax efficiently of course. But that isn't my point at all. It just gets trotted out that making a loss is a good thing because it reduces your tax.

My question is simply this:

What would be best?
Making no loss and having to pay some tax.
Making a loss, reducing your tax bill but having to pay out the loss (less the tax bill)

If my boss said "We are going to pay you £10k less, but don't worry as it will save you (say) £2k in tax" I would have to look at it as £8k lost not £2k gained.

Wouldn't you?

Firstly do any lower league teams run at a profit? If Notts ever have it's got to have been more than a few years ago.

We're not talking about Paragon making a loss, we're talking about offsetting their profits and thus reducing their tax liability. If Paragon start to make a loss AH is in deep doo doo unless his golf enterprise is making massive profit. Paragon were tweeting at the beginning of the year what a great start they'd made with £11.7m of new orders.

[magpie_mania]

Firstly do any lower league teams run at a profit? If Notts ever have it's got to have been more than a few years ago.

We're not talking about Paragon making a loss, we're talking about offsetting their profits and thus reducing their tax liability. If Paragon start to make a loss AH is in deep doo doo unless his golf enterprise is making massive profit. Paragon were tweeting at the beginning of the year what a great start they'd made with £11.7m of new orders.

Any chance you might answer that question?

[Old_pie]

Any chance you might answer that question?

I'm not convinced you'd understand the answer.

Everyone I'm sure would like to make a profit. Notts County don't. Someone has to fund that loss. Simple as that. Whoever funds the loss will sensibly try to do so tax efficiently.

What bit of that are you having a problem with?

[magpie_mania]

I'm not convinced you'd understand the answer.

Everyone I'm sure would like to make a profit. Notts County don't. Someone has to fund that loss. Simple as that. Whoever funds the loss will sensibly try to do so tax efficiently.

What bit of that are you having a problem with?

No problem with any of it. Just that I think that the fact that some see a loss as being ok because you can offset it against tax somewhat strange. Pretty sure they don't sit in the boardrooms saying it's ok, it will save us some tax. I would rather hope they discuss how to minimise the loss as much as possible.