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At Nexa Accountants, our business tax specialists can restructure and demerge businesses and can offer updated suggestions on the implications of tax for any form of framework.We have the requisite skills to help small businesses that include individual or professionals. We also take care of diverse asset portfolios of individuals and families and we work with international companies aiming to construct a foothold in the UK.

We also construct succession and exit strategies well in advance so the avenues of tax reliefs on sale are maximized. We also take care of any HMRC clearances for providing the businesses an absolute peace of mind. We negotiate with HMRC on important and complex business issues and manage tax enquiries on your behalf.

Corporation tax rates

Let’s find out the corporation tax rates for small businesses in UK

2017/18 2018/19
Small profits rate (for those companies having profits upto £3,00,000 19% 19%
Prime Rate (for those companies having profits upto £3,00,000 19% 19%

Corporation tax

Corporation tax are the tax rates which are levied on the profits made by UK-resident companies and also on the profits of those institutions/companies registered overseas with permanent establishments in the UK.

How to pay corporation tax?

Pay corporation tax at ease. You can adopt any of the following means to pay your corporation tax.

  • You can pay HMRC through the medium of Faster Payments, CHAPS or Bacs.
  • The backside of your payslip, dispatched to you by HMRC, discloses you which account to use. You can use your 17-character Corporation tax payslip reference for that accounting period for which you need to pay.
  • You must use your 17-character Corporation Tax payslip reference for that accounting period for which you need to pay.
  • You can pay corporation tax online by using corporate credit card. It usually takes 3 working days for your payment to reach the bank account of HMRC.
  • You can pay at a branch by cheque or cash. You are required to use the payslip that HMRC has dispatched you.
  • You can set up and make changes to a Direct Debit via online account of your company’s HMRC. You have to use your 17-character Corporation Tax payslip reference for the accounting period you are paying.

Self Assessment

Self-Assessment is a system where HMRC collects Income Tax on your personal income. Tax normally gets deducted from wages, pensions and savings. People and businesses with other income need to report it in a tax return to HMRC.

If you are required to send one, get it filled by yourself at the end of the tax year(5th April) it is applicable to.

Self-employed

Register for Self-Assessment and Class 2 National Insurance, if your earnings are more than £1,000 from your self-employment between 6 April 2017 and 5 April 2018.

You have to do this if you have dispatched a tax return before.

You need to register yourself by 5 October in your business’s second tax year, failing, you could be fined.

Not Self-employed

You have to send a tax return and you didn’t send one last year, then get yourself registered for Self-Assessment by 5 October.

Register Now through Nexa Accountants who will do this on your behalf.

Partner or Partnership

If you are a partner in a partnership, register yourself for Self-Assessment.
You also require your partnership’s 10-digit Unique Taxpayer Reference(UTR). If you have lost it, still you can find a UTR.
If you are a ‘nominated partner’, sill you can register for partnership.

Limited company Director / Shareholder Self-assessment

Get registered for Self-Assessment if you’ve dispatched a tax return in the past but you didn’t have to send one last year.

If you are filing your HMRC Self-assessment for the first time, you must have obtained your Unique Taxpayer Reference (UTR), enrolled for the online service and get your account activated using the code you’ve got in the post.

VAT Registration

Register your small business for VAT with HMRC, if the VAT taxable turnover exceeds £85,000.
On registering, you will be getting a VAT registration certificate. This confirms:

  • Your VAT number
  • when to submit your first VAR Return and payment
  • When you had done your registration on your ‘effective registration date’-the date when you went on the threshold.

VAT Registration Rate

2017/18 2018/19
VAT Registration threshold(It is the level at which you should register for VAT) £ 85,000 £ 85,000

Voluntary registration could be done if the turnover falls less than £85,000, unless exempted whatever you sell. You have to shoulder certain responsibilities if you register for VAT. Contact us to know more about your voluntary VAT registration and requirements.

Your VAT Registration responsibilities

From the registration effective date you need to

  • charge the VAT amount which is right
  • pay any VAT to HMRC which is due
  • submit VAT Returns
  • keep VAT records and a VAT account

There is a provision to reclaim the VAT you have paid on specific purchases made before registering yourself.

VAT Return online

The tax paid by all taxable people such as individuals, professionals or small business are known as Value Added Tax. If you are running a business which is registered for submitting HMRC VAT returns, then you are expected to make submissions to the HMRC on a quarterly basis. However, in order to ensure that you submit HMRC VAT returns on time, the HMRC provides you with a VAT return which you need to fill and submit within 30 days after the end of respective quarter. The actual deadline date will be reflected on the return in context of failure, then you become liable to heavy penalties.

The calculation for the VAT paid to the HMRC is arrived by obtaining the net difference of the VAT paid by the customers at a current rate of 20%.

HMRC VAT Return

The HMRC VAT Return records three things :
  • your total purchases and sales
  • the VAT amount you owe
  • the VAT amount you can reclaim
  • what your VAT refund from HMRC is

Always remember, you need to submit a VAT Return even though you don’t have VAT to pay or reclaim.

VAT Schemes

  1. Annual Schemes
  2. Flat Rate Scheme
  3. Standard Rate VAT
  4. Composition Choose

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