I am a Private Limited Company - What Taxes Do I Need To Pay?

Question

I am a Private Limited Company and have a record off all the business expenditure so I can prove what the Business has earnt and spent. I also have a Profit and Loss chart. I have not registered for VAT with HM Revenues and Customs. I know that I must pay Coporations Tax but do nor know how one goes about calcualting it? As my Business is regsitered with Companies House and a formation agent is my company secretary will I be sent all the necessary tax documents by Companies House, HM Revenues etc?

I am asking all these questions because I cannot afford an accountant and need advice? Have I missed any taxes out?

Answer 1

If your turnover is over £60,000/year you need to register now. Corporation tax is due 9months & 1 day after your year-end date. I'm not entirely sure how it is worked out, just that it's based on a percentage of your adjusted profit. It's higly adviseable to invest in an Accountant as they will make sure you get everything right (speaking as an Accounts Assistant - I do Corp Tax on computer so don't need to know how to work it out!). You can ask HMRC for leaflets which will help. Alternatively you could take a bookkeeping/accounting course - although that could end up costing as much as the Accountant who'll do it for you

Answer 2

If you're asking these questions I think you will find it difficult to do without an accountant.

First, Companies House has nothing to do with tax. You will need to file your accounts and annual return with them. They will send reminders at the appropriate time. Now, on to tax.

I presume you know that you would need to register for VAT if your turnover in any twelve month period exceeds the limit (£61,000 at the moment).

The company pays Corporation Tax on its profits which are simply the turnover minus the allowable expenses. Most business expenses are allowable but there are some odd items which are not. The small companies rate at present is 19%. HMRC will send you a return form although you should note it is your responsibility to obtain a form f you don't receive one.

Has your company made a profit? If so what have you done with it? This is important because the money belongs to the company and not you. You can take the profit out of the company by paying yourself a salary. Then you may have to pay PAYE and national insurance contributions depending on the amount and your circumstances. It might be possible to pay a dividend which would avoid PAYE and NI but this does not always work.

Answer 3

Hiya, i run a LTD company too.

Okay go to
www.businesslink.gov.uk
or call 0845 600 9006

They will send you for free The No-Nonsense Guide to government rules and regulations for setting up your business. This publication has been my Bible for many months, full of all the info you need and all contacts for HM inland Revenue, different ways of doing your accts etc, what you need to pay and when you need to pay it.

You are also entitled to 3 one hour appointments at your local business link for free. I made a list of questions each time so that my time was spent actually getting the info i was after. Ltd companies pay 19% corporation tax on your proffit. But if you are having trouble paying for an accountant, it sounds like you are still making a loss( most do for the first three years). It is worth using the first hour with an accountant (which you get for free) they will give you professional advice on what you need to present and how you need to present it. If you need any other help email me [e-mail]

Answer 4

Corporation tax on profit and or any dividends you intend to pay.

Tehn make sure you have set up a PAYE scheme and pay NI (employers & employees) for any employees and also Income tax for any employees.

These are all operating costs and should be paid before your final end of year accounts.

There is an easy answer to your question in that if you don't have an accountanat you will pay more in fines, late filing charges etc.
Don't use a chartered accountant for this kind of small comapny, they are expensive.
Find an old bloke in an office who has a few clients. I do this, my company employs 2 people and hires a load of consultants and I pay less than £300 a year.

In fact, operate through my umbrella company www.serviscom.uk.com

Answer 5

Either go to a local advice centre or hire an accountant specialising in small businesses. My accountant costs me less than £500 per annum for doing everything and it's money well spent as they can actually save you money. If your turnover is around £57-£60K per annum you MUST register for VAT.

You need to get all this sorted NOW, so please get some professional advice.

Answer 6

Hi you will find some useful information related to company related taxes and useful links here.

http://www.head2uk.com/business.php/page/185

Answer 7

Head along to your local business link. They will give you all the information as to what you should do. They will also give other business advice, i.e. data pretection asct, etc