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Need help with the 25/26 payroll year-end?Ask Us Anything

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paul72
Level 8

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Smiley LOL Smiley LOL

 

Anything that seems to good to be true usually is, @SassH 

 

Wages & staff costs, as the name suggests, is for employees of the company.  Their wages/costs are taken off your Top Line (Gross Profit) along with other allowable expenses in order to calculate the profit.

From this profit, the jolly tax-man takes his cut (excuse pronouns - for taxman read also taxwoman, etc.) which leaves you with your Net Profit.

 

Your 'pay' is actually drawings from this net profit (what is left after everything is paid).

 

Hope this helps.

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