TAX AND COMPLIANCE

VAT

While VAT creates additional paperwork, it can also reduce your costs by allowing you to reclaim the VAT you pay on your business purchases. Many businesses have no choice but to register for VAT once their sales reach £85,000 a year.

Corporation tax

If your business is a company, you need to submit corporation tax returns and pay corporation tax on your profits.Although you are likely to use accountants to prepare your returns and calculate your tax liability, you cannot afford to ignore corporation tax until the year end. The way you finance and manage your business can have a significant impact on the final bill.

VAT accounting schemes

VAT accounting schemes can make your life easier, simplifying your VAT accounting and in some cases improving your cashflow. If your taxable turnover of standard and reduced-rated supplies is below £1.35m (excluding VAT), or if you are involved in retail or selling second-hand goods, a VAT accounting scheme could suit you.