We offer the following services:
- Book-keeping
- Preparation and submission of VAT returns
- Preparation of either monthly, quarterly or yearly management accounts
- Preparation of accounts
- Completion and filing of online company and online individual tax returns
- Registration of new businesses for tax and VAT
- Tax advice for small/medium sized businesses and individuals
- Resident and non-resident tax advice
BUSINESS SET UP
In the United Kingdom you can set up the following type of business:
- Limited Company either Private or Public
- Limited Liability Partnership
- Partnership
- Sole Trader
All businesses have a legal requirement to keep full and complete books and records.
LIMITED COMPANIES
All Limited Companies must file accounts once a year with Companies House and the United Kingdom Tax Authorities. This must be done within nine months of the company year end. These should be prepared by a Registered Accounting Firm. An Audit will not be required unless you meet certain levels one of these is turnover greater than £6,500,000.
LIMITED LIABILITY PARTNERSHIP
The Limited Partnership is ideal for businesses that are not trading in the United Kingdom.
PARTNERSHIP
This can be between two or more individuals or companies but you do not have limited liability.
SOLE TRADER
This is when you trade as an individual
MAIN TAXES IN UNITED KINGDOM
There are two main types of tax in the United Kingdom:
- Corporate Tax
- Personal Income Tax
Additionally you also have some other taxes for certain kinds of income such as Capital Gains Tax and Inheritance Tax.
CORPORATION TAX
This is based on the profits of the business.
The rates to the 31st of March 2015 are as follows;
Taxable profits up to £300,000 taxed at a rate of 20%
profits up to £1,500,000 taxed at a rate of 21.25%
Taxable profits over £1,500,000 taxed at a rate of 21%
VAT
- All United Kingdom businesses must charge customers VAT on the sale of all goods and services at a rate of 20%
- All business’s must register for VAT once their turnover exceeds £81,000.
VAT Rules are very complex and must be discussed with an Accountant before a business commences.
PERSONAL INCOME TAX
All individuals based in the United Kingdom receive a Personal Allowance which is an amount that they can earn without paying tax of £10,000 for the year ended 5th of April 2015.
The rates to the 5th of April 2015 are as follows;
Income between £0-£31,865 is taxed at 20%
Income above this level up to £150,000 is taxed at 40%
Income after £150,000 is taxed at 45%
CAPITAL GAINS TAX
This is due on any sale of assets and other items of a capital nature, although there are many exemptions
The annual exemption for individuals for the year ended 5th of April 2015 is £11,000.
The rate of tax is 10% for Entrepreneurs Relief.
INHERITANCE TAX
This is payable on death
Every individual is allowed an exempt figure of £325,000 for individuals before this becomes due.
At death this is taxed at 40% on any amount over £325,000 although transfers prior to death in a certain period are taxable at 20%.
USEFUL LINKS
http://www.companieshouse.gov.uk/ Companies House United Kingdom
http://www.hmrc.gov.uk/index.htm Tax Authorities United Kingdom
http://www.openaeuropeancompany.com/ Company Formation Agents United Kingdom
Enquire About Our Accountacy & Tax Services
For further information, please contact us on +44 (0)208 421 7474 or fill in the form below: