Taxation rates are subject to change so you are advised to check the HMRC website for the latest information.

Taxation for companies

On formation you need to advise HMRC of the company details, so that they have a record of your company and function on their database.
Income tax

As an employer you have to pay the employee’s income tax on their behalf direct to HMRC each month. It is therefore essential that income tax monies withheld from the employees pay packets be kept separate from the rest of the company’s money, so that it is available when it has to be paid to the HRMC on the appointed date every month. There will be serious consequences for non payment, so it is just not worth getting into such a situation.

The amount dur to the HMRC will be worked out as part of the overall payroll calculations, which you can do manually or have it calculated using various payroll software or hire a taxation specialist.
National Insurance

For national insurance the employer is required to deduct the employees contribution if their salary is in excess of the defined amount. In addition the employer has to pay the employers National Insurance contribution in respect of each employee. See www.HMRC.gov.uk for details.

These amounts can add up to a significant sum, therefore it is recommended that all monies are placed in a escrow account ready for payment, as defaulting is not recommended.

Corporation Tax

Corporation tax is charged on company profits, so it is important to submit the company accounts in good time so that the level of tax can be determined and paid. The corporation tax is due 10 months after the end of the financial year but is not payable by the self employed.

Value Added Tax (VAT)

• Funding
• Accounting
• Loans
• Banking