This means that the safest approach could simply be to keep all financial records indefinitely. Please note that this article is intended for educational purposes only and should not be deemed to be or used as legal, employment, or health & safety advice. For guidance or advice specific to your business, consult with a qualified professional. National insurance is governed at UK level, with income tax devolved to the Scottish Government.

Income you receive from the Flat Rate VAT Scheme is income to your business and is included in the calculation of your annual profit. Any dividends you take from the company are taxed through your annual Self Assessment, which has to be completed by all company directors. You cannot use a personal credit card and you can no longer pay at a Post Office. You can find all the information about paying your Corporation Tax bill at the Gov.uk website.

Charities and tax

BHP provides essential advice and specialist insight to support businesses with their tax obligations and alleviate the strain. From choosing the right business licence and insurance to setting up payroll and hiring your first employee, we’ve got the resources and information you need to start your business successfully. If you are an employer, you also need to record and pay the relevant PAYE deductions for your employees. This is straightforward but does involve extra administration. It is worthwhile checking if company directors need to be employees or if they can be engaged under a contract for service (self-employed). Supporting real estate, construction and infrastructure businesses through effective corporate and financial advice.

• If your small business sells products and services, then it may need to start charging Value Added Tax, or VAT.
• However, you’ll need to pay your corporation tax bill by nine months and one dayafter the end of your company’s accounting date.
• If your input tax is greater than your output tax, you can reclaim the difference from HMRC in your VAT return.
• Conversely, an increase in VAT will increase the price of goods and discourage spending.
• The two winning bids will be supported by up to £52 million in start-up funding and will benefit from tax reliefs and other incentives through a combination of devolved and reserved powers.
• Businesses can gift money, equipment, shares, and even provide employee time and expertise to charities.

And, you’ll be charged interest for paying any tax you owe late. If you have a genuine reason for paying late, like a disaster, illness or theft, call HMRC and talk to them about it. Get organised now so filing your end-of-year tax return can be a stress-free experience. Customer data is a critical asset for businesses – and an attractive target for criminals.

I do not know my National Insurance number. How do I register?

You have the option to pay at any time during this period, but we highly recommend getting this out of the way as soon as possible to avoid fines. Check out our separate article if you’re looking for all the current tax rates, thresholds, and allowances. Comprehensive accounting software and support for established limited companies. What we do – Cost-effective online accounting software and service, saving you time and money on your accounting.

Your accounting period is the period for which you plan to declare your income and expenses on your Company Tax return. You must file your Company Tax return no later than 12 months after your accounting period for Corporation Tax ends. It’s also advisable to register for the Government Gateway at the same time. This allows you to file your taxes online under most circumstances.

Latest News InWhich? Tax

The UK and Scottish governments have jointly announced that Inverness & Cromarty Firth and the Firth of Forth are the two locations for Scotland’s Green Freeports. The two winning bids will be supported by up to £52 million in start-up funding and will benefit from tax reliefs and other incentives through a combination of devolved and reserved powers. An estimated 93% of sole traders and 67% of trading partnerships draw up their accounts to 31 March or 5 April and the proposed changes will not affect them. Those with a different year-end might wish to consider changing their accounting year-end to simplify compliance with the tax rules. The expected increase in the rate of corporation tax for many companies from April 2023 to 25% will go ahead. This means that, from April 2023, the rate will increase to 25% for companies with profits over £250,000.

• The process of completing a tax return is very similar to the process of filling in a questionnaire, albeit a very detailed one.
• If the government reduces income tax, consumers’ disposable income will fall.
• Missing tax deadlines can lead to a hefty fine from HMRC, as well as interest on any overdue taxes.
• Reducing your tax liability can be a helpful way to ease financial pressure, and you can use the extra cash to help grow the business.
• TalentScotland supports companies, investors and entrepreneurs considering Scotland as a location, to attract and retain skilled international talent.

Find information on buying quality goods and services from Scottish suppliers and producers. Find valuable business opportunities and attractive investment returns https://www.world-today-news.com/accountants-tips-for-effective-cash-flow-management-in-the-construction-industry/ in projects and companies across Scotland. Scotland has the perfect blend of talent, innovation, and financial resources for your business to thrive.

Organise Your Expenses

Seed Enterprise Investment Scheme – can help you raise money for your business by offering tax relief to investors. Small business rate relief is a tax break depending on the rateable value of your business property or premises. Also known as tax break, a tax relief is a way to reduce your tax liability and pay less tax. It can be a good idea to seek professional financial advice from an independent financial advisor or accountant to identify what tax breaks are available for your business.

As in the answer above, National Insurance is only payable on salary above the National Insurance Primary Threshold. Taking a salary is usually advisable though, as it is an allowable business expense. If you leave the money in the company and the company has profits, you’ll pay Corporation Tax at 19% on those profits. You can claim back construction bookkeeping expenses for up to seven years prior to forming your limited company. You’ll be sent a business rates bill from your local authority in either February or March each year for the financial year that starting on the following 1st April. Details of how to pay will be included on the bill, and you can opt to pay in 12 monthly instalments.

Construction Industry Scheme (CIS)

Read our article “What are dividends and what taxes do I pay on them? Businesses are most affected when there is a rise in corporate taxes or business rates. An increase in national insurance will also incur more costs for companies as the payment is shared between employees and employers. If you are in a partnership, the partnership itself does not pay .

• Salaries in Scotland vary according to the type of work, the sector and the job location.
• If your company is new, file your first set of accounts with Companies House no later than 21 months after the date you registered with Companies House.
• You must register with HMRC to pay Corporation Tax within three months of starting your business.
• If the government reduces income tax, consumers’ disposable income will rise, leading to more spending.
• Many of our clients have been with us for decades and our low staff turnover provides continuity through the different phases of the business lifecycle.
• In our free downloadable guide, FSB’s tax specialists take you through key information, top tips, and the dates you need to remember every tax year.