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May 1st 2014 / BY: Wisteria

Tax Advisors and types of taxes in UK

A tax advisor is a financial expert with advanced training and knowledge of tax law. The main responsibility of a tax advisor is to minimise taxation while remaining compliant with the law. A company has to consider a number of practical and legal tax matters once it has been incorporated. Tax accountants and advisors are important to ensure that all of these practical and legal tax matters are performed and taken care of efficiently.

The different types of taxes in UK are:

  • Corporation tax – Companies incorporated in the UK are liable to corporation tax. It is charged on the company’s profits and gains in an accounting period. The directors of the company need to ensure that they inform HMRC that they exist and that they are trading meaning that they are liable to tax. The directors must also calculate their own liabilities, pay the amount due by the deadline and file a company tax return.
  • Value Added tax (VAT) – The company must register with HMRC for VAT if it has supplied taxable goods and services amounting to more than the registration threshold in the last twelve months or expects to supply taxable goods and services amounting to more than the registration threshold in the next 30 days. The VAT registration threshold is currently £81,000.
  • Income tax – Companies with employees are responsible for calculating and paying appropriate income tax and National Insurance contributions for them. The director has to register as an employee through PAYE (Pay As You Earn) registration, which is used to collect the taxes.

There are a number of reasons it is fundamental to seek advice from a tax advisor and a business accountant while setting up a company. A few tasks the consultants are responsible for are educating clients on tax options, giving specialist advice, preparing and assisting clients in finding the right deductions, credits and adjustments based on their financial situation and helping clients to compute taxes based on their transactions.

There are many tax advisors and business accountants in London who provide tax advice before or after registering a company. There are company formation agents who provide their clients with advice from their professional tax advisors along with company formation.

Wisteria Chartered Accountants, Business and Tax Advisors provide a variety of tax services for companies and individuals.  For tax advice, information on our services or details on setting up a company if you are a non-UK resident, please contact 0208 952 0140 or email info@wisteria.co.uk.