As a small business, it may be hard to imagine paying more tax on income that you have perhaps been used to as an employee at another business, I personally can?t imagine voluntarily paying tax or national insurance to the government however for all our hard work and time, it is of course mandatory and the HMRC Inland Revenue of course have to take their slice of the cake. As a startup or small business you have to declare any income whether you are doing just a little extra work as a self employed person or freelancer or if you are setting up a new business you need to declare this to HMRC tax revenue services as you will always pay tax and national insurance on earnings and gross pay. You are also responsible for registering for VAT should your turnover expect to be around the current threshold of #68,000 which is best recorded using an accounts ledger.
You can find comprehensive details and advice on variations of tax amounts payable on gross pay as well as financial and accounting or tax revenue services at the Inland Revenue where you can also find out more regarding tax codes and how much you can earn before paying anything to the government. It is definitely worth noting at this point that you should start recording all financial and accounting transactions and begin to note the tax that you expect to pay at your financial year end on an accounts ledger or cash spreadsheet so that you can keep track of your business finances and remain efficient as a startup business.
As hard as it is, it is a necessity to pay tax on income by all earners in the UK, and starting or setting up a new business means that you have to comply with regulations set by the government. Now that you are in business any earnings after allowed expenses is taxable as is any gross pay that you will reward yourself or your employees with.
read more............
You can find comprehensive details and advice on variations of tax amounts payable on gross pay as well as financial and accounting or tax revenue services at the Inland Revenue where you can also find out more regarding tax codes and how much you can earn before paying anything to the government. It is definitely worth noting at this point that you should start recording all financial and accounting transactions and begin to note the tax that you expect to pay at your financial year end on an accounts ledger or cash spreadsheet so that you can keep track of your business finances and remain efficient as a startup business.
As hard as it is, it is a necessity to pay tax on income by all earners in the UK, and starting or setting up a new business means that you have to comply with regulations set by the government. Now that you are in business any earnings after allowed expenses is taxable as is any gross pay that you will reward yourself or your employees with.
read more............