Frequently Asked Questions
Self Assessment is HMRC's system for collecting Income Tax. If you're self-employed, a company director, or have income that isn't taxed automatically, you will usually need to complete a Self Assessment tax return each year.
The online filing deadline is 31 January following the end of the tax year, which is also the deadline for paying any tax owed. Paper returns are due earlier, by 31 October.
HMRC charges an automatic £100 penalty for a return filed up to three months late, with further daily and percentage-based penalties the longer it remains outstanding, plus interest on any tax paid late.
VAT (Value Added Tax) is a tax added to most goods and services sold by VAT-registered businesses in the UK, currently charged at a standard rate of 20%, with reduced and zero rates applying to certain goods and services.
You must register once your VAT-taxable turnover exceeds the current registration threshold in any rolling 12-month period, or if you expect to exceed it in the next 30 days alone. Please confirm the exact current threshold with us, as it is reviewed periodically.
Yes — you can register voluntarily below the threshold, which can allow you to reclaim VAT on business purchases, though it also means charging VAT on your sales.
The Construction Industry Scheme (CIS) requires contractors to deduct money from a subcontractor's payments and pass it to HMRC as an advance payment towards the subcontractor's tax and National Insurance.
Contractors deduct 20% (or 30% if the subcontractor isn't registered with HMRC) from payments, which subcontractors can then offset against their tax bill at the end of the year.
Corporation Tax is paid on the profits of limited companies, as well as some clubs, co-operatives and other unincorporated associations. Rates depend on the level of profit — please ask us for the current rates that apply to your business.
Corporation Tax is normally due 9 months and 1 day after your company's accounting period ends, while your Company Tax Return must be filed within 12 months of the end of that period.
