Business tax

Managing tax for your business can be confusing, we can manage all your tax requirements whilst ensuring your set up to be the most tax efficient.

Corporation tax is a tax on limited companies’ profits and taxable income, companies have to calculate their own tax liabilities and are liable to pay the calculated tax to HMRC without prior assessment.

Corporation tax is due to be paid 9 months and one day after the companies normal ‘due date’ (last day of your annual accounting period). The current corporation tax rate is 20% with plans by 2020 to be cut to 17%.

VAT is a tax added onto the final consumption of certain goods, services and products, most business relate goods and services are subject to VAT so they usually pay the standard rate of 20%, however there are several UK VAT rates. Businesses should register for VAT if the value of their taxable supplies in a 12-month period is greater than the current VAT registration annual threshold of £85,000 (from 1st April 2017).

Businesses should also register for VAT if the predicted value of their taxable supplies in the next 30 days alone is expected to exceed the annual VAT threshold of £85,000, the turnover is not just the profit a business makes but the amount of money going through the business.

From the 1st April 2019 all VAT registered businesses must submit their VAT returns online. To find out how we can help you prepare for Making Tax Digital click here.

Capital Gains Tax there is currently a flat 18% CGT rate on business disposal. However, the ‘entrepreneur’s relief’ scheme allows business owners to pay a reduced rate of 10%on business disposals up to a lift time allowance of £10 million.