Soke Accounting

…in this world nothing can be said to be certain, except death and taxes.

Benjamin Franklin

Tax shouldn’t be taxing. Here are some direct links to sites on the HMRC (HM Revenue and Customs ) that can make processing payments easier

PAYE

PAYE stands for “Pay As You Earn”. It is a system of income tax withholding in which employers deduct tax from their employees’ wages or salaries and pay it directly to the government. This ensures that employees pay their taxes throughout the year, rather than having to pay a lump sum at the end of the year.

https://www.gov.uk/pay-paye-tax

VAT

Value-added tax (VAT) is a consumption tax that is applied to most goods and services sold in the UK. It is a tax on the value added to a product or service at each stage of the production and distribution process.

The standard rate of VAT in the UK is 20%. However, there are also reduced and zero rates of VAT for certain goods and services. For example, food, children’s clothing, and books are all zero-rated for VAT.

Businesses that register for VAT must charge VAT on the goods and services they sell. They can then reclaim any VAT that they have paid on their own purchases. This process is known as VAT registration.

https://www.gov.uk/pay-vat

Corporation tax

Corporation tax is a tax that is levied on the profits of companies. It is one of the main sources of revenue for the government.

The current rate of corporation tax in the UK is 25% for profits above £250,000. There is also a small profits rate of 19% for companies with profits of £50,000 or less. Companies with profits between £50,000 and £250,000 will pay tax at the main rate, reduced by a marginal relief. This provides a gradual increase in the effective corporation tax rate.

Companies must pay corporation tax on all of their profits, regardless of where in the world the profits were made. However, there are a number of reliefs and exemptions that companies can claim to reduce their corporation tax liability.

For example, companies can claim relief for capital expenditure on certain assets, such as plant and machinery. They can also claim relief for research and development costs.

https://www.gov.uk/pay-corporation-tax

Companies house

Companies House is the UK government agency responsible for incorporating and dissolving limited companies, as well as registering and making publicly available information about companies.

https://www.gov.uk/get-information-about-a-company

File your confirmation statement

A confirmation statement is a document that UK limited companies must file with Companies House once a year to confirm that the information held about the company is up to date. This includes information such as the company’s registered office address, directors, and shareholders.

The confirmation statement is also used to declare whether the company has any people with significant control (PSCs). PSCs are individuals who have a significant influence over or control over the company.

Companies must file their confirmation statement within 14 days of the end of their accounting reference period. If the company does not file its confirmation statement on time, it may be fined or even struck off the register.

https://www.gov.uk/file-your-confirmation-statement-with-companies-house

We will be going into more detail on each in the coming weeks blogs.

So stay tuned!