We are nearly in a new financial year, and this means that there are many self-employed individuals and directors who will be looking at what their annual self-assessment tax looks like. When running a business, whether as a sole trader or a limited company, there are a number of taxes that you need to be aware of, not all of them will apply, and good Bath Accountants like https://chippendaleandclark.com/accountant-in-bath/ will be able to talk you through the ones that are relevant to your circumstances.
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Some of the taxes to be aware of include:
Self Assessment Tax – this is the tax that all individuals who work for themselves or as directors of business will need to file. It is based on the amount of money that you have earnt in a financial year and is essentially the same as the income tax that is taken out of employed people’s payroll.
Corporation Tax – this is the tax that a company pays on its profits, and it is payable at the end of the business’s financial year rather than the standard financial year that ends at the beginning of April.
VAT – value-added tax or VAT is a consumer tax. It is the tax that is paid by businesses once they reach the VAT threshold. This tax is passed down through the supply chain directly to the end consumer. Each party involved in the chain (other than the end consumer) can claim the VAT back on items they buy if they are VAT registered.