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For your personal self-assessment tax, click this link:
The bill you received from HMRC will tell you which HMRC bank account to use. If you are not sure, then use:
Sort code: 083210
Account no: 12001039
Use your ten-digit Unique Taxpayer Reference (UTR) when paying the bill, and also add the letter K at the end e.g. 1234567890K. You can find your UTR on any letters you have received from HMRC.
If you don’t know your UTR number and you are an existing client of ours, give us a call and we can supply it to you.
– For your corporation (limited company) tax, click on this link:
The payslip you received from HMRC will tell you which HMRC bank account to use. If you are not sure, then use:
Sort code: 083210
Account no: 12001039
Use your 17-character corporation tax payslip reference for the accounting period you’re paying.
You’ll find the payslip reference:
If you don’t know your reference and are an existing client of ours, give us a call and we can supply it to you.
This used to be paid separately from your tax, but they are now paid in line with your tax return. They currently cost £145.60 annually. If your profits are £5,965 or over, then you will have to pay these contributions. If you don’t earn this level of profits, you will be exempt from making any payment.
A payment on account is a tax payment made twice a year by self-employed people in order to spread the cost of the year’s tax. It is calculated by looking at your previous year’s tax bill, and is due in two instalments.
The payment on account can be thought of as a way of paying off some of your tax bill in advance. If your earnings have been lower than £1000, then you will not have any payments on account to make. If you know that your earnings for the next tax year are not going to be as high as the previous year, then you can reduce your payments on account.
You must register when you go over the threshold of £83,000, or know that you will. This threshold is based on your VAT taxable turnover – the total of everything sold that isn’t VAT exempt.
You can register voluntarily if you want to. This may be something to consider if, for instance, you have expensive set up costs and your customers are in business rather than being the general public. This means you will be likely to receive VAT refunds in the early period of running your business while your income builds up, and other VAT registered businesses are not affected by an increase in your prices (due to you being VAT registered).
This is one of the most common questions that our sole trader clients ask. The answer depends on lots of factors including personal situation, future plans and the level of tax you might pay to HMRC. Everyone’s situation is different, so although the man down the pub or your friends think you should become a limited company, it might not make financial sense.
If you operate as a sole trader, you can you take money out of your account as and when you please, paying tax on any profit calculated when your personal return is completed. However, as a limited company, this money belongs to the company. You would need to have income paid to you either via wages or receiving dividends.
Limited companies have several legal obligations such as having to file annual accounts to Companies House, file an annual confirmation statement and report any employees’ payments in real time to HMRC. This is in addition to the personal tax return which every director of a limited company still has to submit.
Sole traders only have to complete a personal tax return, so is clearly a much simpler option.
As you can see, there are many factors to take into account!
Interested about how we could help you or your business? Get in touch now and we’d be happy to help...