Accounting & Taxes for SMEs

As a Limited Company, UK branch of a foreign company, or a club or other unincorporated association, you are liable to pay Corporation Tax on any profits made.  UK Limited Companies are liable for Corporation Tax on all profits both from activities within the UK and abroad.  A UK branch or subsidiary of a foreign company on the other hand only has to pay tax on profits from its UK based activities.

Taxable profits include money made from doing business ("trading profits"), investments, or, selling assets for more than they cost ("chargeable gains").  

In order to calculate profits made and any Corporation Tax liability you must prepare a Company Tax Return and submit it to HMRC by your deadline (usually 12 months after the end of your company accounting period).  Any tax liability must then be paid by your payment deadline which is usually 9 months and 1 day after the end of the accounting period.

Whilst Equifino can ensure your legal requirements in relation to Corporation Tax are fully met, our aim is always to provide added value by working closely with you throughout your financial year in order to help you plan for, and minimise the extent of, any tax liabilities.  We achieve this through  the production of regular management accounts and strategic tax planning.  

Regardless of the structure of your business, you will be required to register for VAT if your turnover for the last 12 months was over £85,000, or, you expect it to go over this limit within the next 30 days.   Once registered, you are required to charge the correct rate of VAT to your customers for your goods and services, and then complete and submit a VAT return along with paying any VAT payable to HMRC by the required deadlines.

VAT can be complex which is why at Equifino we offer comprehensive  VAT support for SME businesses.  It's not just about preparing and submitting your VAT return and paying your tax on time, but providing advice and guidance so that you can make informed decisions around when you need to register for VAT, what rates to charge, or whether one of the many VAT Schemes available would benefit your business.

If you are registered with HMRC as self- employed, whether as a sole trader or an individual within a business Partnership, or a company Director receiving dividends from your limited company, you are legally required to complete and submit Self Assessment Tax returns in relation to your income.

The deadline for submission of returns for the previous tax year is 31st January (online returns) with any tax liability also required to be paid on the same day.  A subsequent payment may also be required by 31st July in relation to advance payments on account.  You are also required to keep accurate records of your income and business expenses for each tax year either manually or by using accounting software. 

At Equifino we can provide a full accounting service for you, from book-keeping to ensure you keep accurate records, to the completion and submission of Self Assessment Tax returns and dealing with any HMRC queries on your behalf as your agent. 

We also provide our clients with strategic financial advice and support throughout the year on topics including Tax Planning, VAT, Cashflow Management and Funding support. 

As a sole trader or individual within a business partnership, you may have to pay Capital Gains Tax (CGT) if you make a profit, or gain, from the full or partial sale of a business asset.

Business assets that might incur Capital Gains Tax include:

• land and buildings
• fixtures and fittings
• plant and machinery
• shares
• registered trademarks

In order to calculate if you need to pay CGT you first need to calculate the amount of any gain.  A gain is usually the difference between what you paid for the asset and the price it was sold for.

It is possible to deduct cost of buying, selling or improving the asset from the amount gained.  These costs can include for example fees for having the asset valued or advertised for sale or Stamp Duty.  Once the amount of any gain is calculated you may be able to reduce or delay paying tax if you are eligible for tax relief.

At Equifino we can help to calculate if any CGT liability is owing, ensure that you take into account any relevant deductions and reliefs and then pay all tax due on time.