Self Employed/Corporation Tax

Our team of income tax experts and corporation tax experts are here to help you complete your tax returns as tax-efficiently as possible so you can sleep at night without the worry of that next tax bill.

Taxation Services

Whether you are self employed or have a business you will need to complete a self employed/corporation tax return.

Many people complete their own self assessment tax return if they are self employed, but the problem with this is that they often miss out on tax relief and overpay tax.

By using out expert team of Chartered Accountants you can be certain that no stone will remain unturned and we will make sure that all tax relief available for you and your business is claimed for.

With Edwards Bailey Chartered Accountants completing your self employed/corporation tax return you will also benefit from income tax and corporate tax planning at no additional charge. This will ensure that long term tax planning strategies are implemented so you never pay more tax than you should ever again.

Corporate Tax and Planning

There is a fine line between income/corporate tax planning and corporate tax and planning.

Corporate tax planning is the implementation of long term strategies to ensure you are saving tax where possible, where as corporate tax and planning is ensuring that you plan ahead for corporate tax liabilities and plan towards building enough reserves to pay the liability by the corporation tax due date, without the need to defer corporation tax payment and organise a corporation tax time to pay arrangement.

We will help you implement income/corporate tax planning strategies to make sure you are claiming tax relief where ever possible and assist with income/corporate tax and planning so you know exactly what to save to pay your tax liabilities on time, as it can be difficult to defer corporation tax payment and income tax payments, then organise an income tax or corporation tax time to pay arrangement.

Self Employed/Corporation Tax Rates 2020/21

Some of the most commonly search for phrases online is how much corporation tax do I pay and how much income tax do I pay.

Below we have detailed the income tax and corporation tax rates 2020/21 to assist you with planning ahead for your next tax bill.

The income/Corporation Tax Rates 2020/21 are as follows:

Corporation tax rates 2020/21 19%
Corporation tax due date 9 months after the end of the company’s year end

Income tax rates 2020/21 20% up to £37,500
40% between £37,501 and £150,000
45% over £150,000

Dividend tax rates 2020/21 0% on first £2,000
7.5% up to £37,500
32.5% between £37,501 and £150,000
38.1% over £150,000

Self employed/Corporation Tax Due

Self employed/corporation tax returns are due for filing by 31st January following the end of the tax year if you are self employed or 12 months after the end of your financial year if you operate as a limited company.

Is your income tax or corporation tax due? If so, please call Edwards Bailey Chartered Accountants today for a free consultation.

Our team of income tax experts and corporation tax experts are here to help you complete your tax returns as tax efficiently as possible so you can sleep at night without the worry of that next tax bill.

How can Edwards Bailey help you?

Our aim is to ensure we help our clients attain their goals.

VAT UK 2020

We completed some research and found that some of the most searched for phrases online in relation to VAT are:

  • What is VAT at the moment?
  • What is the VAT registration threshold 2020?
  • how much is VAT 2020?
  • What is the VAT rate 2020 UK?
  • What is the VAT UK 2020 rate?
  • When is VAT due?

Below we have answered some of these questions to help you better understand how VAT impacts you and your business.

VAT Registration Threshold 2020

The VAT registration threshold 2020 is having sales of more than £85,000 in any 12 month period, however you can register for VAT voluntarily if your sales are below £85,000.

You have to register for VAT with HMRC within 30 days of the end of the month when your sales go over the VAT registration threshold for 2020 of £85,000. Your effective date of registration is the first day of the second month after you go over the threshold.

When is VAT Due

VAT returns are due for filing and payment one month and 7 days after the end of the VAT quarter, unless you are on an annual VAT filing scheme.

Due to the implementation of making tax digital, if your sales are greater than £85,000 a year you need to submit your VAT return through accounting software such as QuickBooks or Xero.

Our team of Quickbooks and Xero experts can help you implement cloud accountancy solutions with minimal disruption to your business operations, make sure you are getting the most out of your accounting software, complete your bookkeeping for you to free up your valuable time and make sure your VAT returns are filed accurately.

VAT Rate 2020 UK / How Much is VAT 2020 / What is VAT at The Moment

The standard VAT rate in the UK is 20%, however there are other VAT rates depending on your businesses trade.

Your business could fall under the zero VAT rate, the 5% reduced VAT rate or have to use a different rate altogether when completing your VAT returns under the flat rate VAT scheme.

As you can see the UK VAT legislation is an extremely complex area, filled with many pitfalls and potential issues. This can easily lead to errors being made on VAT returns, which in turn can lead to large fines and penalties.

Why not outsource your VAT returns to one of our VAT experts to prevent errors being made and ultimately remove the risk of unnecessary fines and penalties?

Fixed Fee Tax Return

Unlike most other accountants, Edwards Bailey Chartered Accountants work on a fixed fee basis, whether you are looking for a fixed fee tax return, corporate tax planning or need help with your self employed/corporation tax return, you can be certain of how much it will cost without any nasty surprises.

How can Edwards Bailey help you?

Our aim is to ensure we help our clients attain their goals.

Frequently Asked Questions?

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Who pays corporation tax UK?

Limited companies incorporated in the UK pay corporation tax on their taxable profits. There are some exceptions if a company is incorporated in the UK but does not actually trade in the UK.

Corporation tax for small and medium-sized companies need to be paid 9 months after the company’s financial year-end, with the filing deadline for the corporation tax return being 12 months after the end of the company’s financial year.

How do I calculate corporation tax?

Corporation tax in the UK is charged at 19% on taxable profits whether a company is small, medium or large. The profits in a company’s set of year-end accounts may differ from the profit that the company pays tax on.

This is due to certain costs not being tax-deductible, such as:

- Penalties
- Fines
- Depreciation
- Client entertaining
- Certain client gifts
- Client meals
- Certain legal and professional fees

Can you pay corporation tax in instalments?

Corporation tax for small and medium-sized companies needs to be paid 9 months after the company’s financial year-end.

A company’s corporation tax liability does not need to be paid in one go. You can pay your corporation tax in smaller instalments, as long as the total tax liability for the year is paid by the deadline.

If you are unable to pay your corporation tax on time you can arrange a payment plan with HMRC, however, HMRC may not agree to this and you will incur interest on the late payment.

Do you have to pay to be VAT registered?

You do not have to pay to register for VAT. Some accountants may charge you a fee to complete the registration on your behalf, however, at Edwards Bailey Chartered Accountants we do not charge our clients for completing the HMRC application form to register for VAT.

Do companies pay VAT?

All companies and individuals pay VAT on purchases if the supplier used is VAT registered.

The real question is, can you reclaim the VAT that you have paid?

You can only reclaim the VAT that you pay on purchases if you are VAT registered. You do this by including the VAT paid on your VAT return, which gets offset with any VAT you have charged customers on your sales invoices.

Who can claim VAT back?

All VAT registered businesses, whether a limited company or self-employed, can reclaim the VAT they incur on purchases.

It does not matter whether you have registered for VAT voluntarily or have registered as a result of breaching the VAT threshold. If you are VAT registered for any reason you can reclaim the VAT that you incur.

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