Tax, accountancy and business support for the small and medium sized business

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Self Assessment Tax

Personal self assessment tax is usually due on the 31 January and 31 July each year.


Unfortunately when you enter the self assessment system for the first time there is often a heavy one-off January tax liability as the tax payer can be required to pay one-and-a-half years worth of tax all-at-once. Looking for a proactive accountant when you start your business will help you to know about your upcoming tax liabilities so that you have time to save for them.


Corporation Tax

Corporation tax for limited companies is paid on a different schedule to self assessment tax. For companies with a taxable profit of up to £1.5 million corporation tax is due every year 9 months and 1 day after the company’s year-end. Companies with profits of more than £1.5 million pay their Corporation Tax by instalments.


Value Added Tax

Businesses pay their VAT each quarter by the deadline shown on their VAT Return, usually one calendar month and 7 days following the VAT quarter end. For example, if a VAT quarter ends on 31 March, the VAT Return and payment must be with HMRC by 7 May.


A Direct Debit can be set up with HMRC so they collect the VAT automatically when each VAT Return is filed. In this case they will collect the VAT 3 days later than normal. In the above example the VAT would be collected by Direct Debit on the 10 May. We recommend that our clients set up a Direct Debit for VAT so that the payment is not accidentally forgotten thus avoiding any penalties.


There is also an annual accounting scheme for businesses with a turnover of less than £1.35 million. With this scheme, you account for your VAT in 12 monthly instalments across the year and then make one VAT Return at the end of the year. However if your business has a lot of VAT to claim on purchases and expenses the annual accounting scheme won’t work for you.


PAYE

Employers pay the PAYE tax and National Insurance they have deducted from employees wages in one tax month across to HMRC by the 19th of the following month.


Additionally, employers must pay the Class 1A National Insurance due on any employee benefits to HMRC by 19 July each year.


If you need any further advice please give us a call.