Tax insights and updates from ekt accountants

Self-Assessment Tax Returns

Individuals who are self-employed, company directors, landlords, or who receive untaxed income may need to submit a self-assessment tax return to HMRC.

Important points to remember:

• The tax year runs from 6 April to 5 April the following year
• Online tax returns must normally be submitted by 31 January following the end of the tax year
• Any tax due is also typically payable by 31 January

Keeping accurate records throughout the year helps make the tax return process easier and reduces the risk of errors.

Corporation Tax Responsibilities

Limited companies operating in the UK are required to pay corporation tax on their profits.

Important compliance requirements include:

• Registering for corporation tax after forming the company
• Preparing statutory accounts each year
• Filing a corporation tax return with HMRC
• Paying any corporation tax due by the required deadline

Proper financial records and timely preparation of accounts help ensure businesses meet their obligations and avoid penalties.

VAT Registration and Compliance

Payroll and PAYE Responsibilities

Businesses may need to register for VAT if their taxable turnover exceeds the VAT registration threshold set by HMRC.

Once registered, businesses must:

• Charge VAT on eligible goods or services
• Submit VAT returns to HMRC
• Maintain proper VAT records
• Pay VAT collected to HMRC after deducting eligible VAT on business purchases

Effective record keeping and proper VAT procedures are essential for maintaining compliance.

Businesses that employ staff must operate a payroll system and comply with PAYE requirements.

Key responsibilities include:

• Calculating employee salaries and deductions
• Deducting income tax and National Insurance contributions
• Reporting payroll information to HMRC
• Paying employer National Insurance contributions

Maintaining accurate payroll records ensures employees are paid correctly and helps businesses remain compliant with employment tax regulations.