Taxation Issues
All new businesses will have to comply with the relevant tax legislation. This can be broadly split into the following three areas:
Sole traders and partnerships will be liable to pay income tax at the relevant rate on all profits generated by the business. They will also be required to pay capital gains tax on the increase in capital value of any assets held by the business. A limited company will be liable to pay corporation tax on its taxable profits and on any capital gains that it makes. As such all new businesses should notify the Inspector of Taxes and the DSS when they commence trading.
All new businesses need to be registered for National Insurance and PAYE contributions.
Whilst a new business will not have to register for VAT until its turnover exceeds £55,000 per annum it may be desirable that the business voluntarily registers for VAT from the very beginning, particularly if it is anticipated that its first year's turnover will be in excess of the £55,000 threshold.
For more information contact Simon Morris
Income/Corporation Tax
Sole traders and partnerships will be liable to pay income tax at the relevant rate on all profits generated by the business. They will also be required to pay capital gains tax on the increase in capital value of any assets held by the business. A limited company will be liable to pay corporation tax on its taxable profits and on any capital gains that it makes. As such all new businesses should notify the Inspector of Taxes and the DSS when they commence trading.
National Insurance
All new businesses need to be registered for National Insurance and PAYE contributions.
VAT
Whilst a new business will not have to register for VAT until its turnover exceeds £55,000 per annum it may be desirable that the business voluntarily registers for VAT from the very beginning, particularly if it is anticipated that its first year's turnover will be in excess of the £55,000 threshold.
For more information contact Simon Morris
