In the midst of setting up your new business, you are undoubtedly looking into matters of taxation. As anyone in business will attest, you need to have your tax matters dealt with as a matter of urgency.
Taxation laws can be difficult to master. But, if you have a basic, no-nonsense guide at your disposal, you are sure to have a legally compliant venture.
Here you will find all the information that you need about your business and taxation laws.
When you set up a business, you need to ensure that you are registered to pay tax. This could be as a sole trader, or as a limited company. You need to make sure that you are paying the right levels of corporation tax. This is to avoid any pitfalls within the future. Taxation law books can provide a wealth of information on this subject. What is more, you can use government-backed websites to assist you with your endeavour.
You need to make the appropriate bodies aware of your active business. This should be done within the first three months. You should fill in the online forms and make sure that any tax that you need to pay is saved in a separate business banking account. You should fill in the appropriate tax return as you see fit.
For some, they are unsure of what tax that they have to pay. It can be broadly split into three distinct categories:
You may also have to pay some level of VAT, or valued added tax. This ensures that all bases are covered. By law, the company has to pay these taxes.
For those that are not comfortable with online methods of accounting you can hire an accountancy firm. They will deal with your taxation affairs on your behalf for a nominal fee. You should provide them with invoices, receipts and pay cheques. This is to ensure that all levels of tax are dealt with in the main. Failure to do this may result in substantial penalties.
These penalties can be financial. It is unlikely that you will face imprisonment for not paying your taxes on time. Mistakes can be made. If this is the case, you need to inform the tax office so that these can be put right. This will avoid any penalties that may be incurred.
Taxation law is quite strict. You need to endeavour to pay the appropriate amount of tax that is declared based on your income. You should get a breakdown of your taxes via post. This will ensure that you can pay them on time. You should always keep an audit trail of any payments received or processed. This ensures that you have all of the pertinent information at your disposal. Consider this information as proof. This means that you will be compliant. You will not face penalties if you are honest and forthcoming about any income and expenditure within your venture.
Taxation affairs can be difficult to master. But, if you read and research your business will thrive and prosper.