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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.

Taxpayers warned about fake HMRC messages

23 January 2024

As the 31 January self assessment tax deadline approaches, Brits are being urged not to fall for phishing emails, calls or texts that purport to come from the UK tax body HMRC.

A large number of scam texts, emails and phishing calls have been doing the rounds, claiming to be from HMRC. The fake messages claim that the recipient either owes money, is owed a refund from HMRC or needs to update their details. The messages invite recipients to click a link with the aim of extracting their personal information in order to steal money.

According to research by NatWest, fake emails, calls or texts which claim to be from legitimate organisations are the most common type of scam in the UK. The next most common are "trusted organisation scams" - 21% of Brits were targeted by a criminal impersonating a trusted organisation like HMRC in 2023.

According to Takepayments, HMRC has already received more than 130,000 scam reports this year and efforts from scammers are only set to escalate as the tax return deadline draws near, especially fake messages about tax refunds.

Takepayments offers this advice to avoid being scammed:

  • Always treat unexpected text messages about finance as suspicious, especially if the language encourages urgency. Although HMRC does use text communication, it will never request payment details by text or email. Never send money via bank transfer or PayPal to unknown sources.
  • Scammers often use broken English or make grammatical mistakes within their texts. This could be a giveaway that a message or email isn't legitimate.
  • Trusted bodies like HMRC won't usually send official communication from a mobile number. Always check the number the message has come from; if in doubt, use a phone number look-up service online. If the number begins with 07 or is withheld, treat it as suspicious. The number "60263" has been closely linked to fraudsters impersonating HMRC.
  • Some fraudsters are using AI to produce automated calls, warning about tax evasion. Scammers often use background sounds to give the impression they are calling from a call centre. However, if these sounds seem looped, overly consistent or don't match the context of the call, they could be artificial.

If you think a message seems suspicious, contact HMRC directly; do not reply to the text or email itself. You can help fight fraud by reporting suspicious emails to HMRC using [email protected].

Have you filed your tax return yet?

With only one week to go until the 31 January self assessment deadline, HMRC reports that 3.8 million people have yet to file their tax return.

Myrtle Lloyd, HMRC's director general for customer services, said: "If you are a self assessment taxpayer, now is the time to take action and get your return done. Once a tax return is submitted, it's easy to find out what's owed and to pay online or using the HMRC app."

The penalties for late tax returns include an initial £100 fixed penalty, which applies even if there is no tax to pay, or even if the tax due is paid on time. Anyone unable to pay in full (that owes less than £30,000) may be able to set up a Time to Pay arrangement online.

Anyone who thinks they no longer need to complete a tax return for the 2022 to 2023 tax year should tell HMRC before the deadline on 31 January 2024 so that they can issue a withdrawal notice.

Written by Rachel Miller.

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