It is important to pay taxes when you are operating a business. Not paying them could get you in trouble. A company has to pay different types of taxes. There are corporation taxes, VAT, income taxes, national insurance and business rates. All of them need to be explained in a way that you can understand them completely and go through your filing process smoothly.
1) Corporation Tax
It is imposed on limited companies and is calculated on their net profits. It is also applicable on foreign companies that have an office in the UK and a club or club type establishment. Corporations evaluate this tax themselves. They calculate it using standard, acknowledged methodology and file it at the end of every year.
After your registration is complete, head to the UK Government’s website and visit Pay your Corporation Tax bill page. You will gain a lot of important information there. It will also take you to the page where you will pay the tax. The deadline for paying it is either 9 months or 12 months.
After your registration is complete, head to the UK Government’s website and visit Pay your Corporation Tax bill page. You will gain a lot of important information there. It will also take you to the page where you will pay the tax. The deadline for paying it is either 9 months or 12 months.
2) Value Added Tax
Another tax is Value Added Tax or VAT. Companies start charging VAT because they have to pay it to the government. It applies to almost every product. VAT charged on publications is lesser than on other products. It is paid to the HMRC.
Businesses can register for VAT at any time but once they touch the threshold they have to get registered by law. The current threshold for registering is £85,000. If they are spending on products, they can reclaim their VAT.
VAT works in a chain. It starts from the raw material suppliers and terminates at the end consumer who purchases the finished product. The UK Government’s website provides you a calculator to estimate the amount of VAT you need to pay. It also has a VAT payment page where you can go and execute your payment after calculating it. Remember that all of VAT payments are made online and checks are not accepted.
You can check its deadline on the VAT return. The UK government’s website has a dedicated VAT index for any queries that you might have.
Businesses can register for VAT at any time but once they touch the threshold they have to get registered by law. The current threshold for registering is £85,000. If they are spending on products, they can reclaim their VAT.
VAT works in a chain. It starts from the raw material suppliers and terminates at the end consumer who purchases the finished product. The UK Government’s website provides you a calculator to estimate the amount of VAT you need to pay. It also has a VAT payment page where you can go and execute your payment after calculating it. Remember that all of VAT payments are made online and checks are not accepted.
You can check its deadline on the VAT return. The UK government’s website has a dedicated VAT index for any queries that you might have.
3) PAYE
It is specifically focused on employers. It includes insurance, Class 1 and 1B certificates loan repayment for students, Construction Industry Scheme (CIS) payments and Apprenticeship Levy deductions.
Check the Government’s website for a complete guidance on this. You can either pay it monthly or quarterly.
Check the Government’s website for a complete guidance on this. You can either pay it monthly or quarterly.
4) The National Insurance
It depends upon the type of business you are operating and the number of your employees. National insurance Certificates, NICs, make you eligible for different state benefits such as pension. For instance, if you are the director of your firm and do not hire anyone, you are an employee too so you will file Class 1 NIC through PAYE. It is kind of an income tax return. Sole traders pay using Class 2 and Class 4 NICs.
Its deadlines depend upon the way you are operating your business. For instance, if you are a sole trader, you have to submit it every year, which means by the 31t of January. If you run a limited company, you have to check your PAYE obligations and pay it accordingly.
There is a National Insurance Hub Page that contains relevant information related to insurance. General inquiries page features specific queries and their possible solutions.
Its deadlines depend upon the way you are operating your business. For instance, if you are a sole trader, you have to submit it every year, which means by the 31t of January. If you run a limited company, you have to check your PAYE obligations and pay it accordingly.
There is a National Insurance Hub Page that contains relevant information related to insurance. General inquiries page features specific queries and their possible solutions.
Business Rates
This applies when you are using a non-domestic building for your business purposes such as a shop, club, factory and the like. Secondly, if you are using your domestic building for commercial purposes, you will need to pay it too.
Your local council sends you a bill that you have to pay in February or March each year. This covers the next year. On the Government’s website, go to Business rates hub page or help page for queries. You can also get in touch with your local council if you’ve any queries.
Given the nature of these variety of taxes, it could be sometimes confusing for businesses to sort everything out. Not least because they’ve more important things to focus on as well. Don’t worry, Weaccountax.com will sort everything out everything related to your tax regime. They provide unmatched services at the best rates and incorporate latest techniques to make your bookkeeping as smooth as possible.
Your local council sends you a bill that you have to pay in February or March each year. This covers the next year. On the Government’s website, go to Business rates hub page or help page for queries. You can also get in touch with your local council if you’ve any queries.
Given the nature of these variety of taxes, it could be sometimes confusing for businesses to sort everything out. Not least because they’ve more important things to focus on as well. Don’t worry, Weaccountax.com will sort everything out everything related to your tax regime. They provide unmatched services at the best rates and incorporate latest techniques to make your bookkeeping as smooth as possible.
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