Originally written by Joanne McLaughlin on Small Business
Companies and self-employed individuals in the UK have a number of obligations in relation to the taxes they may have to pay to HMRC.
It can be overwhelming as to which of these obligations apply to you, given that different taxes are due depending on your circumstances. This can be especially unsettling when you are just starting out in business. This article provides an overview of the main business taxes you will encounter and the circumstances under which you will be liable to pay these.
Corporation Tax
All limited companies in the UK are liable to corporation tax on profits. The profit of the company is, broadly, calculated by deducting items of allowable business expenditure from your turnover figure. Note that there are certain reliefs on corporation tax that may also be deductible.
Corporation tax returns must be filed no later than twelve months after the end of your accounting period, although the tax must be paid within nine months and one day of the account period end.
The current UK corporation tax rate is 19 per cent, although it has been confirmed that this will increase to 25 per cent with effect from April 1 2023.
Income Tax
If