Whatever you're doing - as a sole trader, limited company or charity - HM Revenue and Customs (HMRC) will be interested in you... As a Director or sole trader you have a legal obligation to make sure you or your company is operating in-line with current regulations. And it's important to ensure that your company is registered for Corporation Tax, VAT and PAYE if they need to be.
Whitehill Bookkeeping are registered with HMRC as an agency; this means that we can act for you in everything from registering for VAT/PAYE/Corporation Tax, submitting tax returns or discussion the position you're in with HMRC on your behalf. We've had years of experience in dealing with HMRC to set up payment plans, appeal fines and submit data on time. Contact us to discuss your needs, or read more below.
VAT, or Value Added Tax, is a tax that is charged on goods and services in the UK. This includes those produced within the UK, and may include those that are imported in to the UK from abroad. Most companies in the UK will add the cost of VAT on to the price that they sell to the customer. However, it is important to note that unless your company is VAT registered, it will not be allowed to do this. Read about how we can help you with VAT registration.
There are currently three rates of VAT in the UK. These are known as standard-rate, reduced-rate and zero-rate. Different items will be classed in these categories, and charged VAT accordingly. Currently, the standard-rate is 20%, and the reduced-rate 5%. Items may also be classed as ‘exempt’ or ‘outside the scope’.
PAYE, or Pay As You Earn, is the system HMRC uses to collect National Insurance and Income Tax. It means that employers must deduct tax and National Insurance from employee salaries before they pay them, and includes the payment of employer National Insurance taxes. If you have any employees, you need to register as an employer with HMRC. You are legally required to do this if you decide to hire employees, or if you're paying any director or employee a salary. Read about how we can help you with PAYE.
Corporation tax is a tax on profits; strictly, it's a tax on the taxable profits of limited companies and other organisations including clubs, societies, associations and other unincorporated bodies. It's a complex subject in its own right; HMRC has published a helpful guide if you're not sure whether it applies to you. If it does, we can register you for Corporation Tax, calculate the amounts due and advise you on when and how to make payment.