What should you consider when registering and growing a company in the UK?
Our accounting team has outlined some details of tax compliance for you to check against.
Ensuring tax compliance for your company can help you avoid a series of unnecessary penalties and lay a solid foundation for business development.
Key Tax Aspects You Need to Know
Corporation Tax:
Corporation Tax is the tax paid by UK companies on profits. The rate is usually determined based on company profits. You need to understand how to calculate and report Corporation Tax, as well as important deadlines.
Value Added Tax (VAT):
If your company’s annual turnover exceeds a specific threshold (£90,000), you may need to register for and pay Value Added Tax (VAT). Understand how to charge VAT to customers and how to report and pay VAT to HMRC.
Income Tax:
If you are a director or shareholder of the company and receive income from the company, you need to understand the relevant rules for Income Tax. This includes how to declare and pay Income Tax.
National Insurance:
If you are an employer, you need to pay National Insurance contributions for your employees. Additionally, as a sole trader or partner, you may also need to pay National Insurance for yourself.
PAYE (Pay As You Earn) and Employer Responsibilities:
If you employ staff, you need to understand how to deduct their PAYE and National Insurance, and report and pay these amounts to HMRC on time.
Annual Financial Statements and Audit:
You need to prepare and submit annual financial statements as required by UK law. Some companies also require audits.
Capital Gains Tax:
If your company sells assets or investments, you may need to pay Capital Gains Tax. You need to understand how to calculate and report Capital Gains Tax.
Tax Agent:
If you’re not familiar with tax, you may need to hire a tax agent to help you with your company’s tax affairs.
Tax Reliefs and Allowances:
Find out if there are any tax reliefs or allowances applicable to your company to minimize tax burdens.
Inheritance Tax:
If you plan to pass your company or assets to family or heirs in the future, you need to consider the impact of Inheritance Tax and take necessary planning measures.
