Frequently asked questions

Business Tax

1. What is the current corporation tax rate?

The current corporation tax rate in the UK is 19%. 

2. Can I claim tax relief on business expenses?

Yes, you can claim tax relief on legitimate business expenses incurred for the purpose of your business. These expenses should be wholly and exclusively for business purposes. Examples of deductible expenses include office rent, employee salaries, travel expenses, and professional fees. It's important to keep accurate records and receipts to support your expense claims.

3. What is Making Tax Digital (MTD), and how does it affect my business?

Making Tax Digital (MTD) is an initiative introduced by HMRC to modernise and streamline the tax system in the UK. It requires businesses to keep digital records of their accounting information and submit their tax returns digitally. MTD affects businesses that are VAT-registered first, with other taxes expected to follow. Compliance with MTD regulations is mandatory, and businesses need to use compatible software to meet the requirements. We can assist you in transitioning to MTD and ensuring compliance.

Payroll

1. What is Real-Time Information (RTI), and how does it impact payroll?

Real-Time Information (RTI) is a system introduced by HMRC to improve the accuracy and timeliness of payroll reporting. It requires employers to report payroll information to HMRC in real-time, including details about wages, taxes, and National Insurance contributions. Employers must submit Full Payment Submissions (FPS) on or before each payday. RTI simplifies the process of reporting payroll information and helps HMRC maintain up-to-date records. We can manage your payroll and ensure compliance with RTI requirements.

2. What is National Insurance, and who pays it?

National Insurance (NI) is a social security system in the UK that funds various state benefits, including the state pension, healthcare, and unemployment benefits. Both employees and employers are responsible for paying National Insurance contributions. Employees' NI contributions are deducted from their wages, while employers must also contribute on behalf of their employees. The specific NI rates depend on the employee's earnings and employment status.