Ensuring that your business is compliant with the current UK tax laws can feel daunting.
Simply put, the rate of Corporation Tax you pay depends on how much profit your company makes. Corporation Tax is at 19% for the years starting 1 April 2017, 2018 and 2019 and at 18% for the year starting 1 April 2020 (Source: HMRC).
In the 2016 Budget, the government announced a further reduction to the Corporation Tax main rate for the year starting 1 April 2020, setting the rate at 17%.
Income Tax- This measure ensures that the personal allowance will be increased to £11,000 for 2016 to 2017 and to £11,200 in 2017 to 2018.
The basic rate limit will be increased to £32,000 for 2016 to 2017 and to £32,400 for 2017 to 2018.As a result, the higher rate threshold will be £43,000 in 2016 to 2017 and £43,600 in 2017 to 2018.
VAT- VAT registered businesses with a taxable turnover above £85,000 will be required to collate and submit their VAT returns under Making Tax Digital rules from April 2019. The webinar here from HMRC covers the fundamentals of making tax digital.
National Insurance: If your business has employees, you must pay National Insurance contributions. These are directly paid to HMRC when the salaries are paid.
Want more advice on managing your business tax? We always recommend that you check with your accountant or the latest government guidance.
Expend will help you track and manage your expenses and company spending in real-time. Ensuring that you track and report everything more accurately and faster than traditional methods. So while it won’t help you pay the right amount of tax, it will help to ensure that you can claim back what VAT your business is owed.
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