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A Guide to Tax and National Insurance for Small Businesses

A Guide to Tax and National Insurance for Small Businesses

If you’re starting a business, it is essential that you at least know the basics of tax and national insurance and your tax obligations. Tax inspectors will pay just as much attention to the profits and accounts of a small business or sole-trader as they would a large firm. What are the different taxes businesses should be aware of? There are a range of different taxes which depend on the type of business, business formation and how your business operates. Income tax and corporation tax: Income tax applies if you are self-employed or an employee of a business. If you are a limited company then you must pay corporation tax. National Insurance: National Insurance (NI) is a form of tax paid by both employers and individuals. Value Added Tax: Value Added Tax (VAT) is tax on the supplies and sa... »

FSB wants NI and VAT Freeze

FSB wants NI and VAT Freeze

Freezing National Insurance Contributions (NICs) and suspending VAT increases must be priorities for the next Government to help small firms out of the recession, the Federation of Small Businesses (FSB) has said. Launching its 2010 manifesto (149k PDF) to coincide with the run-up to the general election, the FSB has made several recommendations which it says will help small firms create jobs, get access to finance, innovate and set up new businesses. One of the key proposals is a shake-up of the current payroll tax regime, including a freeze on NICs and a rebate for firms taking on new staff over the next two years. “Two critical areas for small firms are job creation and broadening access to finance,” said an FSB spokesperson. “Small businesses hold the key to tackling ... »

An Introduction to Tax and National Insurance for Business

An Introduction to Tax and National Insurance for Business

As a business owner, the complex web of tax and National Insurance obligations that apply to you can be extremely daunting, and it is difficult to know where to begin. Luckily, you will have this article to help you – below, you will find a comprehensive run-down of the taxes, schemes and reliefs which are likely to affect you and your business Which taxes affect my business? Every business is different. If you are a small sole trader, your tax obligations are likely to be fairly simple, limited to just income tax and NI, but larger businesses will have more complex obligations. Broadly, the taxes you are likely to come across include: Income tax. Both employees and self-employed people pay income tax, as long as income exceeds £10,000 (in the 2014/15 tax year). If you are an employer, you... »