Receive tax right and try to pay for good taxes is one of the most essential financial aspects of any business, especially when starting, here is the British tax guide for new businessmen.

1. Corporation tax

The corporate tax, also called the corporate or commercial tax, is a direct tax imposed on the revenue or capital of a company by the government. Corporate Tax is the cost of a company (cash exit) imposed by the government and is the main source of income of the country. The highest tax rate is 35%. Corporate tax applicable to the following institutions, that is to say, all sizes of companies.

2. Patent box

The British patent box is a system of intellectual property tax relief for innovative corporate innovation corporation tax companies. The benefits of eligible patents are then taxed at a preferential rate. The idea is that it encourages innovative companies to continue and market their research and development work based in the United Kingdom.

3. Payment of dividends

If you have a company's actions, you can make money in two ways: to sell the actions if they increase value, or dividends paid by the company if it chooses to distribute profits to shareholders. Dividends can be a great way to generate regular income from your investments. But, as with any income you win, you may need to pay a tax. The good news is that the dividend tax is lower than the rate you will pay for work money or pension.

4. Taxation for employers

The tax is inevitable. But if you stay informed, you can at least eliminate the stress of managing it. Let's start with the basics.

If you use people, you must register and use a payroll schema. And if you run a pay scheme, you must deduct your employees' income tax and assurance (NICS) and pay it to HMRC. You will also have to pay the Employers' NICs.

5. Value Added Tax ("VAT")

Value Added Tax (VAT) is charged with most goods and services provided by VAT. As a VAT registered company, you bill VAT on the products and services you provide and retrieve the VAT you pay when you buy goods and services for your business.

Conclusion:

Before you start a small business all you need is an accountant for small businesses to do the numbers which help you make all the right decisions.

Need more consultation related to a small business or any of its issues? Just get in touch with us or visit our website at accotax.co.uk. Our expert accountants in London give you consultation related to any of your taxation or accounting issues.

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