The two most common taxes for Limited Companies are Corporation Tax and VAT.
In simple terms, Corporation Tax is a tax on profits. It isn’t payable until 9 months and 1 day after your financial year-end and the current rate is 19% for most companies.
VAT is different in that you collect the tax on behalf of HMRC. Registration is only mandatory for businesses with a Turnover of more than £85,000. You collect VAT on your Sales, and this is offset by VAT incurred on your purchases. The net amount is paid to HMRC via a monthly or quarterly return.
These are the simple headlines but as ever with tax, the devil is in the detail.
TF Accounts have the experience to help you navigate your way through the UK tax regime, understand what is and what isn’t allowable, prepare returns and ensure that deadlines are met.
Heard of Making Tax Digital? This is HMRC’s programme to digitise the tax system for businesses and individuals. It’s a phased process but for VAT it is already up and running. VAT registered businesses must use recognised software to keep digital records and submit returns.
This is another area where our expertise and experience will help you.
