Being a small business owner in the UK is a lot of responsibility. Once you open up shop, you can get blinded by all the profits you are making. You may get carried away, and that’s a colossal mistake you must not make. You need to pay attention and make sure that you are handling all of your business’ needs. The bottom line is, you not only worry about your business growth, but you also have to take care of your employee’s wages, do your accounts and file your taxes.
Many business owners get stumped when they are doing their taxes. It’s the most stressful activity they are required to do to continue operating. Most of them don’t know how to do it. If you are one of them, you don’t have to worry! We’ll help make the process easier for you. Read on and find out how you can file your taxes.
Register your business
Companies House handles all registration of companies. Hence, if you have a business, you need to file several legal documents to incorporate your business in the official listings. Go to
https://ewf.companieshouse.gov.uk/runpage?page=welcome to get it done.
Register for Corporation Tax
HMRC or the Her Majesty’s Revenue and Customs is the department that is responsible for the collection of all kinds of taxes. That’s why you need to register for Corporation Tax with them. You must file it within three months after you register your business with Companies House.
Here’s what will happen. Once you register your business with Companies House, you will receive a letter from HMRC within a few days. In this letter, they will indicate your business’s Unique Taxpayer Reference or the UTR. It is a ten-digit number that you will use to be able to register for Corporation Tax. Go to https://online.hmrc.gov.uk/registration/newbusiness/introduction to register.
Set up the PAYE system
You are required by the government to deduct income tax from the pay of every employee you have. You need to deliver this by the 22nd of every month. Failure to comply or missing the deadline means you will incur penalties.
To do so, you need to set up an employer account in the PAYE system. Go to https://www.gov.uk/register-employer so you can register. You’ll get a user ID you can use to log in, file payroll reports and pay taxes.
Maintain a complete record
You must keep everything in order. If you need to hire accountants Central London has plenty to choose from. HMRC checks company records periodically, and you want to avoid any problems.
Ready your business tax return
HMRC will notify you when to send in your Corporate Tax Return, so it’s best to be ready for them. The reports must indicate the business’s profit or loss for tax purposes.
This is all there is to it. It’s undoubtedly a quick and easy process. Once you have completed this, you can pay taxes on your business profits and continue your operations.
Published by Zachary McGavin