Understanding business tax
Tax is an unavoidable fact of life, especially if you are a business. For business owners, understanding what types of tax affects them, how much they should be paying, managing finances for tax and more can be very stressful to do alone. Tax Agility are a team of accountants who specialise in business tax for small to medium sized businesses in London.
We have worked with many businesses in the past therefore we know how difficult tax can be for a business owner, especially small business owners or start-ups to understand. Our goal is to help SMEs with their business tax and to do so, you need to have a clear understanding of what business tax is.
What is business tax?
A business tax (generally speaking) are taxes paid to the government. Business tax is quite complex as there are a number of different types of tax that businesses have to pay. The tax a self-employed person would pay is different to what a company would pay, as well as how and when they would pay.
To help you understand a bit more about business tax, Tax Agility have a compiled a list of the three most common taxes businesses pay:
- Corporation tax – in the UK you must pay corporation tax if you fit into these categories; a limited company, a club or any type of unincorporated association like a sports club or community group or if you are foreign company with a branch in the UK.
- VAT – this stands for Value Added Tax. This is the tax that is added to the service or product a business sells based on value. The standard rate in the UK is 20% however the VAT business charge depends on their goods and services.
- Business rates - If your business operates from office or retail premises, then you would have to pay business rates which is like council tax, but for business properties.
How we help
The hectic life of running a business means you don’t get to take a step back and take a look at your business tax planning. At Tax Agility, our professional and experienced accountants can take a fresh look at your business and find new ways to minimise your tax liabilities.
Our services include:
- Preparation of self-assessment tax returns
- Strategic reviews to minimise tax liabilities
- Dispute settlement negotiations and revenue investigation
- Advice regarding VAT, NI and employee benefit legislation
- Consultancy service on the taxation implications of the sale and purchase of businesses
For a more in depth explanation of our services check out our Business Tax page.
In order for us to help you, we need to understand you first. That is why we offer our first consultation for free, so we can learn about your business and personal finance and plan an accounting solution tailored for your business.
Call us on 020 8780 2349 to arrange a meeting to discuss business tax, how it affects you and how we can help you manage any business tax you pay. Alternatively, you could use our enquiry form to contact us and we will call you back.
Are you managing your business correctly?
Managing a small business isn’t as daunting as it seems. However, we all need someone to consult with as a means of having a second point of view. Our small business management consultancy can be especially helpful for startup and contractor companies that are inexperienced or just need expert advice on a new field.
Many small business owners don’t realise the importance of today’s business decisions on tomorrow’s cash flow, how companies can appear to have money in the bank but still be technically insolvent or the importance of thoroughly managing your cash. Management is a critical part of a business’s success and we strive to make sure you understand the long-term impact of decisions you make today.
How we help
Tax Agility are experienced professionals in small business consultancy and have a variety of ways to help you, the business owner. These are just a small insight into what our services include:
- Preparation of annual business plans, forecasts and projections - these plans are designed to keep your business on the right track by planning where your business is going and regularly looking at the plan to see if you’re on track.
- Review of credit control and cash management - Tax Agility accountants will review how you manage your cash, ensuring you have a healthy cash flow. Our accountants will also ensure you’re in control of all your credits as you don’t want to fall into insolvency.
- Attendance at key business meetings - our accountants will attend meetings with you to make sure the meeting results are in your best interests financially and that no decisions are made without our expert advice.
For more on what our services include, read our Small Business Management Consultancy page.
We will provide you with expert accountants to make sure you are getting the best advice to make your business as profitable as possible.
Tax Agility believes in offering advice based on your goals for your business and different opportunities that may come up for you. We do this by having regular review meetings to keep everyone up to date and ensure we’re all working and on track towards the same goal.
We understand how time consuming certain tasks like bookkeeping and yearly reports can be, which result in you having less time dedicated to other - equally as important - aspects of your business. Our expert accountants will take care of the financial decisions so that you can continue to run your business successfully.
Call us now on 020 8780 2349 to arrange a meeting to discuss our small business management consulting service.
Personal tax accountants for you
If you find yourselves, head in hands, trying to manage your personal accounts and bookkeeping and understand terms and deadlines, then it is time to call Tax Agility. Our chartered accountants will calculate the amount of your tax liability and chart a payment plan aligned with your cash flow. We can also file your return for you, once you have given us your approval.
A key part of tax service is actually tax planning. We work with you to minimise your future tax liabilities. We review your ent
ire tax situation, from Inheritance tax to Capital Gains tax from sales of property, personal possessions, business and shares, and when applicable, tax relief on Maintenance Payments. As personal tax is a complicated issue, and we believe strongly in adding real value to your financial situation, we offer our first consultation free of charge to learn about your personal financial circumstances first, before creating a practical solution that suits you best.
Are you required to do tax return?
In the UK, most (if not all) business owners, company directors, self-employed contractors, investors and trustees are required to send a tax return.
Also, you’re required to submit one if you have received:
- Income from either self-employment or a partnership business - typically this refers to contracting or having your own business. Read our recent post ‘Accounting and bookkeeping for contractors’ to learn more.
- Income from overseas - this comes from your business abroad or have done work or performed seasonal services overseas.
- Rental or other income from land or property.
- Other income, which is received gross, i.e without the tax deducted.
Also, you’re required to do a tax return if you receive a P800 from HMRC saying you didn’t pay enough tax last year. P800 is usually for employees/ working individuals whose tax circumstances changed in the previous year.
How can we help you
Managing personal tax can be a daunting and time-consuming task. At Tax Agility, our professional chartered accountants will manage the process for you. We will carry out all the required computations as well as submitting your return and dealing with HMRC for you. In short, we are here to save you time and money by dealing with the self assessment for beginning to end.
Tax is a complex subject, this is why we prefer to avoid using jargons when explaining complex matters such as tax returns, how VAT works and the IR35 legislation. Not only is our explanation jargon-free, our solutions are also practical, designed with your unique circumstances in mind and aiming to be as tax efficient as possible.
View our free factsheets for more downloadable explanations on topics that are commonly asked about.
Talk to us on 020 8780 2349 or use our enquiry form, we’ll call you back to arrange your first free consultation and to discuss how we can assist you with personal tax.
Accounting & Bookkeeping for Contractors
On April 6th 2017 the new IR35 tax rule was made official. The goal for IR35 legislation is to ensure the people who benefit from tax savings are honest contractors while transferring those who should be ‘employed’ back to paying the correct PAYE payments. If you are a contractor affected by this new legislation, our chartered accountants at Tax Agility can provide help and advice.
Contractors are professionals in their field who work through their own limited companies instead of as employees of other companies. As a contractor, freelancer or consultant, you are your own boss. As great as that sounds, it also means you have to manage all of your own accounting matters, which can become overwhelming particularly when you’re already busy dealing with customers and projects. If bookkeeping and accounting are your top concerns, check out this page titled Accounting and Bookkeeping for small business.
How do we help you?
Tax Agility offers a number of services to help contractors from providing an extra pair of hands to simply giving you practical, jargon-free advice. So how do we help exactly?
Reminders of important dates and deadlines
There are various datelines for annual accounts, annual return, VAT returns, employer annual returns (P35, P14, P11d) and personal tax returns. As a contractor juggling different tasks, you might forget about these important dates. At Tax Agility, we will manage all your tax deadlines to ensure your returns are submitted as required and on time. Click here for more information on Contractor Dates and Deadlines.
Contractor Accountancy packages
We offer personalised contractor accountancy packages to suit your needs. Whether you’re about to set up a limited company or already have one set up and you need an ongoing management package, we can help. Our packages are designed to help manage ongoing returns and administrations and best of all, they are affordable. All our packages start with a face-to-face meeting so we get the chance to understand your business, learn your individual needs and discuss which package is best for you. Click here to read more about Contractor Packages and Fees.
Straightforward, practical advice
If there are questions and uncertainty when setting up your contractor business - for example: should you set up a limited company or work via an umbrella company? What’s the most tax efficient method to operate? Does the new IR35 tax rule applicable to you? - all of these are valid questions require an honest answer. We will explain your questions and help guiding you through all the legal and financial requirements of becoming a contractor.
If you want to know more about how we work with contractors, talk to us on 020 8780 2349 or complete the enquiry form and we will call you back. The Tax Agility team is here to help, which is why the first consultation with our team of chartered accountants is free of charge.