Tax FAQs

What are the current rates of UK Corporation Tax?

For the tax year ending 5th April 2019:

 

 

What is the deadline for payment of any corporation tax to HMRC?

Nine months and one day from the company’s year-end date.

 

What are the current rates of UK personal income tax (‘PAYE’ or Pay-As-You-Earn)?

For the tax year ending 5th April 2019:

 

What are the current rates of UK National Insurance contributions?

For the tax year ending 5th April 2019:

 

                             

 

What are the current rates of dividend tax for UK tax-resident shareholders?

For the tax year ending 5th April 2019:

 

VAT FAQs

What is the current rate of UK VAT?

20%

What are my reporting obligations if I wish to apply for UK VAT registration?

On successful registration, the company is obliged to make a quarterly return stating total net (i.e. before VAT) sales and purchases and the VAT element thereof, along with the total value of sales to and purchases from other EU states.

In addition, a UK company selling goods to companies in other EU states is obliged to complete an EC Sales List each quarter, detailing the VAT numbers of those customers and the total value of supplies to each.

How long is my application for VAT registration for the company likely to take?

In general, 4-5 weeks from receipt.

How long do I have before I have to pay over any net VAT I’ve collected?

One calendar month from the end of the reporting quarter.

How long do I have to wait before a claim for VAT repayment is reimbursed?

Generally, three to four weeks from receipt of the quarterly return; however, for claims in excess of 2000.00 GBP, HMRC may request further documentation in the form of original purchase invoices etc.

What is the current turnover threshold for UK registration?

Registration is only compulsory once UK-only sales turnover exceeds 85,000 GBP /year, or if turnover is likely suddenly to exceed 85,000 GBP in the next thirty days.

I intend to trade with companies in other EU states. Does UK VAT registration then become compulsory, irrespective of the amount of annual turnover of the business?

Yes.

What choice of methods do I have for accounting for VAT?

Credit: Total invoices received and issued in the period

Cash: Total cash paid or received in the period

Flat-Rate: A discounted rate of output VAT payable on sales income in exchange for waiving the right to reclaim VAT on purchases

Annual: Set monthly or quarterly instalment payments made throughout the company’s financial year, with any balance payable on an annual return

What are my obligations re provision of registered addresses, trading addresses etc?

The company must provide a separate VAT trading address from its registered address if it is to be considered a genuine trading entity.

The Company As Employer

I’m considering employing staff in the UK; how do I go about this?

The company must first be registered with HMRC as an employer; thereafter, it must make minimum quarterly declarations of the income tax and national insurance deducted from staff remuneration, and pay these over within two weeks of the quarter-end.

What is the procedure for paying over taxes I’ve collected as an employer from my staff?

The annual tax quarters run as follows:

  • April 6th – July 5th
  • July 6th – October 5th
  • October 6th – January 5th
  • January 6th – April 5th

Alternatively, the company can opt to make monthly declarations and payments, this frequency becoming compulsory if the amount of income tax and national insurance paid over per month exceeds 1,500.00 GBP.

At the tax year-end date of 5th April, all employee remuneration and taxation must be accounted and signed for by a director on a form P35, and returned to HMRC by 19th May. Any under-deductions and/or payments in the tax year must be made good by 19th April.

What are my obligations as an employer regarding the provision of registered addresses, trading addresses etc?

The company must provide a separate trading address from its registered address only if it cannot be demonstrably shown that trading activity takes place at the registered address.