One of the biggest announcements in the Budget on 3 March 2021 was the news that the main rate of Corporation Tax will increase to 25% from 1 April 2023. Alongside this announcement was the introduction of a small profits rate of 19% to “provide protection to the smallest businesses”.
The small profits rate of 19% will apply where augmented profits for the accounting period do not exceed the lower limit of £50,000.
The main rate of 25% will apply where augmented profits for the accounting period exceed the upper limit of £250,000.
For companies with profits in between these thresholds, tax is calculated at the main rate then Marginal Relief applies to reduce the liability.
November 3rd, 2021
You can only charge VAT if your business is registered for VAT.
VAT is charged on things like:
• business sales - for example when you sell goods and services
• hiring or loaning goods to someone
• selling business assets
• commission
• items sold to staff - for example canteen meals
• business goods used for personal reasons
• ‘non-sales’ like bartering, part-exchange and gifts
November 3rd, 2021
IR35 tax legislation is nothing new. In fact the legislation was introduced in 2000 in order to identify ‘disguised employees’ in businesses.
IR35 rules ensure that off-payroll and on-payroll workers are taxed fairly. This means that if a contractor is working under exactly the same conditions as an employee (effectively a ‘disguised employee’), IR35 regulations ensure that the contractor pays the same tax and national insurance as an employee would.
October 17th, 2021
If you’re a sole trader, you run your own business as an individual and are self-employed.
You can keep all your business’s profits after you’ve paid tax on them. You’re personally responsible for any losses your business makes. You must also follow certain rules on running and naming your business.
