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We've scoured the web to get you the most up-to-date advice which includes the most useful tools on offer from the officials themselves.

Effective tax planning is essential if you are to minimise your tax bills. Simple tax planning can significantly reduce your tax liabilities.

The self-assessment tax return is an unavoidable burden if you are liable for self-employed tax or have complicated income tax affairs.

Corporation tax is charged on a company's profits. If you trade as a limited company, ensure that paying this tax is as painless as possible.

National Insurance Contributions (NICs) are payable whether you are self-employed or employed by your own company, although different rates apply.

As well as your legal obligations, you’ll want to ensure that payroll is painless and that you use any opportunities to improve your tax-efficiency.

VAT

Effective VAT planning aims to ensure that VAT is relatively painless, and that you are reclaiming as much as possible of the VAT you pay.

Capital gains are made when you sell something for more money than you paid for it. As a result, you can be subject to tax. Take professional advice.

Business property taxes apply to businesses with commercial premises.There are two commercial property taxes: business rates and stamp duty land tax.

If you have tax problems or face a tax investigation, it pays to seek professional advice and you must act rather than just hoping for the best.

Small firms show resilience in the face of challenges

26 July 2022

A new survey of small business owners has found that seven in ten remain confident about their prospects in spite of rapidly rising prices and hiring challenges.

Insurance provider Simply Business has polled over 1,000 small business owners from across the UK to find out how they are responding to the current economic climate. The findings, published in its SME Insights Report, show that 70% of small business owners say rising costs is the biggest challenge in 2022 and 49% say they will be forced to increase their prices over the next six months.

One in five (21%) intend to raise prices by 6-10% and for 7%, these increases could be by as much as 20%. The findings also show that 40% of business owners are putting plans on hold to open new or additional premises for the next six months; 48% say they are unlikely to hire any extra staff; and 20% say they're unlikely to purchase any new equipment.

However, despite the fact that 62% of business owners believe the economy is set to worsen over the next six months, 71% of owners say they are confident about their business' prospects.

This level of optimism is in stark contrast to levels reported during the pandemic when, in September 2020, 17% of business owners predicted that their business wouldn't survive another lockdown. Almost two years on, 34% now say they're more confident about their firm's prospects than six to 12 months ago.

Commenting on the research, Jonathan Portes, Professor of Economics and Public Policy at King's College London, said: "Small businesses in the UK have had to cope with overlapping economic shocks over the past three years - the pandemic, Brexit and now the cost of living crisis. What this study shows is that despite the general economic pessimism, most businesses remain resilient. Like consumers, they expect the UK economy to worsen significantly over the next year, but they remain reasonably confident about their own prospects in the face of rising cost pressures."

Further support for small businesses was announced last week as the UK government extended the £4.5 billion Recovery Loan Scheme for a further two years. The scheme offers government-backed loans to small businesses; nearly 19,000 businesses have joined the scheme since it launched in April 2021. Under the scheme, the government will underwrite 70% of lender liabilities, at the individual borrower level, in return for a lender fee. The maximum loan size is £2 million.

Shevaun Haviland, director general of the British Chambers of Commerce (BCC), said: "The two-year extension to the Recovery Loan Scheme will be a lifeline for many businesses facing a rising tide of costs. It is now essential that businesses in need of this extra support can access the scheme as quickly as possible to make sure they get help before it's too late."

Written by Rachel Miller.

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