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Tax – nobody likes it but we all have to deal with it.
We ignore it at our peril. HM Revenue and Customs have awesome powers to apply penalties, surcharges and interest to those who fall foul of their requirements, so beware!
Our job it to help you keep within the law while at the same time minimising your tax liabilities.
The main taxes for businesses are:
Corporation Tax – applies to companies, clubs and other unincorporated bodies. Annual tax returns have to be submitted within 12 months of the year-end, and tax paid within 9 months of the year-end.
Income Tax – applies to partners and sole traders. Self Assessment returns have to be submitted by 31 January following the end of each tax year, Payments have to be made in advance of this by the preceding 31 January and 31 July.
VAT – applies when sales exceed the VAT threshold. Smaller businesses can also register voluntarily. Some types of sales are exempt from VAT which makes life tricky, others are at reduced rates and zero rate. Returns and VAT payments have to be submitted accurately, correctly and on time.
PAYE / NI – applies when you have employees. Proper payroll records must be kept, regular payments made, and annual returns submitted on time.
Capital Gains Tax – applies when you make a gain through selling business assets (or even if you give them away!). Individuals get an annual tax-free allowance, but companies have to pay tax on gains however small. Reliefs are available for certain sales of business assets but it is important to follow the precise requirements for these to apply.
Inheritance tax – applies to individuals rather than businesses. However consideration of inheritance tax plays an important part in tax planning for family businesses.
There are of course numerous other tax situations to be considered, for example tax on benefits, tax on charges, the use of tax losses, tax within groups, etc.
Luckily, we are here to help you. As well as taking care of all your tax returns, with your permission we can deal directly with HMRC on your behalf to sort out problems.