Tax is a complex subject to navigate in the real world but from a forecasting perspective, we take a more simplistic view. Let's take a look at the various taxes that you may experience as a business.
In the Numberslides forecast, we take into account your Corporation tax.
This is a tax levied against your company profits and differs based on where you are based and also your level of profit. Therefore if you make a loss, in most cases, you do not pay taxes and in some cases you can "carry forward" your losses so they reduce your future tax bill.
KPMG have a good table that shows that various corporation tax rates across countries.
At the moment, we do not take into account Value Added Tax (VAT).
VAT is a tax on qualified purchases and revenues - you must register for VAT tax if you have revenues over a certain threshold. This is treated as a through tax and so not currently included in our financial forecasts. It is on a roadmap, to incorporate VAT as this is an important element of cash flow planning.
We do not include capital gains tax.
Capital Gains Tax is a tax on the profit when you sell or ‘dispose of’ something that’s increased in value. An important note to make is that this is a tax on the gain not the total money you receive. Due to the complexities and differing standards and practices across territories, we do not include this in our forecasting but important for you to be aware of
Nor do we include tax breaks and tax shelters.
Numberslides is not a tax advisory. However, there are a number of situations where there are significant tax breaks such as Capital Allowances (where a % of a capital purchase is tax deductible) and other tax breaks e.g. from operating in an Enterprise Zone. There are so many that we cannot incorporate them all into our forecasts and still keep it straight forward to use. We are constantly working to improve our platform and so we may incorporate inclusion of tax breaks including the benefit of EIS investing (for UK based users).