All Aspects Of Taxation

This is probably one of the most recognised services provided by accountants and we endeavour to ensure that you pay as little as possible within the legal boundaries. We practise "tax avoidance" as much as legally possible, but we will not entertain "tax evasion", which is likely to lead to serious confrontations with the Inland Revenue and Customs & Excise.

Corporation Tax

Charged on the company's profits and is payable nine months after the company's accounting date. A Tax Return needs to be completed and again this is much more easily processed with the aid of a modern computer program and the liability easily calculated.

P.A.Y.E.

Tax on the salaries and wages paid by the Company to Employees and Directors has to be paid monthly or quarterly, depending on the amount involved. Again computer programmes make light work of calculating the Tax and National Insurance liabilities and also providing you with payslips and a P60 at the end of the tax year.

Taxation affairs for the Self Employed are straightforward, though the annual Tax Return form appears to be more complicated, it can be easily processed with modern computer systems. Completing the Tax Return manually is time consuming even using the internet mistakes can easily be made.

Failing to claim all expenses and allowances, you can pay more tax than you should & you will not find the Inland Revenue offering advice on how to minimise your tax liability

VAT Registration

It's important to keep a close eye on your earnings each month to check if you are approaching the VAT threshold currently £67,000 p.a. which is £1,288 per week. You need to constantly monitor your turnover for the past 12 months & if you exceed the limit register within 30 days. It can be advantageous to register voluntarily even when below this limit. This will enable you reclaim VAT on expenditure although you will of course also have to charge VAT on your sales or services.

The VAT flat rate scheme is an option which can be of considerable benefit to small businesses with a turnover of below £150,000. In many cases you will pay less VAT by using this scheme.

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