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November 6th 2013 / BY: Wisteria

Chartered Tax Advisors provide tax considerations

If you are about to register a company, or have already completed your company formation, it is important to understand the different types of tax you are required to pay. It can be a complicated area of running a business and Chartered Tax Advisors can provide help.

Tax consultants can ensure you are compliant in terms of tax but can also help you to pay the lowest amount of tax possible.

Corporation Tax Planning

All UK companies must pay UK corporation tax. You are required to complete and return corporation tax forms to HMRC and pay the correct amount of corporation tax depending upon your profits. Wisteria’s Tax Accountants offer a service to complete Corporation Tax returns and filing requirements.

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PAYE and Payroll

Employing and paying a salary to staff or paying a salary to any directors means you need to register as an employer with HMRC under PAYE.  PAYE (Pay As You Earn) is the government’s system to collect income tax, national insurance and student loan repayment.

This goes hand in hand with payroll, the process for summarising all wages and deductions for all employees. The Income Tax and National Insurance is deducted before employees are paid. Wages and deductions such as tax, overtime, and sick pay, can be seen on the payslips.  The employer is responsible for sending tax and NI to the government by the relevant deadline.

It is important to record payroll accurately to ensure you are following requirements under employment law. Wisteria offers a professional payroll service for which we complete your monthly payroll and statutory forms.

VAT Planning

You are required to register for VAT if your turnover is £79,000 or above in a taxable year. However you can voluntarily register if your turnover is below this threshold. Benefits of VAT registration include:

  • reclaiming VAT on any purchase (especially useful for start-ups who purchase lots of new equipment)
  • appearing more professional, for example those who trade with you will know your turnover is under £79,000 if you are not VAT registered

Wisteria offers a VAT registration service which includes submitting your VAT application and providing on-going professional VAT advice, such as which VAT scheme is best for you.

Personal Self-Assessment Tax Return

Directors of UK companies need to annually file a personal self-assessment tax return to report their personal income. This is submitted to HMRC to show an individual’s income and gains for the tax year, 6 April to 5 April.

For more information, contact us to book a consultation with a Chartered Tax Advisor. Our tax advisers can clarify questions you have on starting up your business such as UK Tax, VAT, PAYE and paying yourself as a director.