As a new business you will have to be aware of the UK tax laws and know how and when to submit your returns. Tax laws vary depending on whether you are a sole trader, partnership, private limited company or limited liability partnership.
Sole Trader, Partnership & Limited Liability Partnership
In regard to income tax and national insurance, you will be required to register as self-employed with HR Revenue & Customs. You will also need to fill out and return a self assessment tax return every year and pay class 2 & 4 National Insurance Contributions (NICs).
Private limited company
To comply with Corporation tax laws you will have to submit a corporate tax return (CT600) annually along with a complete set of accounts. With respect to Companies Registry filing, all private limited companies must complete an annual return form, each and every year. They must also submit a signed set of accounts to Companies Registry, on annual basis.
All VAT registered businesses, irrespective of their classification, must complete a quarterly VAT return form, which details how much VAT you’ve charged your customers, how much VAT you’ve been charged by your suppliers, and also how much outstanding VAT you owe to HR Revenue & Customs (if any).
All businesses, with employees, must make PAYE and National Insurance payments. Those businesses paying more than 1,500 GBP to HM Revenue & Customs must make these contributions on a monthly basis. Otherwise, if less than 1,500 GBP PCM, contributions should be submitted quarterly.
Sole Trader, Partnership & Limited Liability Partnership
In regard to income tax and national insurance, you will be required to register as self-employed with HR Revenue & Customs. You will also need to fill out and return a self assessment tax return every year and pay class 2 & 4 National Insurance Contributions (NICs).
Private limited company
To comply with Corporation tax laws you will have to submit a corporate tax return (CT600) annually along with a complete set of accounts. With respect to Companies Registry filing, all private limited companies must complete an annual return form, each and every year. They must also submit a signed set of accounts to Companies Registry, on annual basis.
All VAT registered businesses, irrespective of their classification, must complete a quarterly VAT return form, which details how much VAT you’ve charged your customers, how much VAT you’ve been charged by your suppliers, and also how much outstanding VAT you owe to HR Revenue & Customs (if any).
All businesses, with employees, must make PAYE and National Insurance payments. Those businesses paying more than 1,500 GBP to HM Revenue & Customs must make these contributions on a monthly basis. Otherwise, if less than 1,500 GBP PCM, contributions should be submitted quarterly.