The existence and activities of any company in the UK is governed by many rules and laws. In most cases, companies are required to comply with financial and tax reporting requirements, including VAT (VAT) reporting, payroll and auditing. You can read more about when and what to do below.
Our specialists will be happy to advise you on the current conditions of the activities of companies in the UK and the necessary taxes for business, as well as offer you assistance with the following questions. We prepare your financial and tax reporting and take care of your primary and secondary accounting. Our accountants will help to keep payroll and, if necessary, prepare an audit, as well as prepare and submit VAT reports.
Financial and tax reporting
Under current law, all companies are required to prepare and submit their financial statements. With the exception of Scottish partnerships, which do not have to file financial statements if they do not conduct any business in the UK. But at the same time, the obligation to submit a tax return for Scottish partnerships remains, even if the declaration is zero.
Financial statements for amazon accounting are submitted to Companies House within 9 months from the date of the end of the company’s financial year. At the same time, income tax (Corporation Tax) is paid. The tax return to the Internal Revenue Service (HMRC) is submitted within 12 months from the date of the end of the company’s financial year.
Our accountants will prepare for you the financial and tax statements of your company, as well as help with tax optimization.
In most cases, small businesses in the UK are not required to carry out an audit. Under the Companies Act 2006, a company is considered small if it satisfies the following conditions:
For fiscal years beginning before January 1, 2016, at least two of the following conditions are met:
- Company turnover less than £6.5 million
- The total value of the company’s assets is less than £3.26 million
- Number of employees less than 50 people
- For fiscal years beginning after January 1, 2016, at least two of the following conditions must be met:
- Company turnover less than £10.2 million
- The total value of the company’s assets is less than £5.1 million
- Number of employees less than 50 people
In addition, certain charitable organizations and certain subsidiaries that are part of a group of companies are not audited. For a more complete definition, please contact our specialists.
However, there are cases where a company needs to be audited for some other reason, such as when it is under government regulation, upon request, or in order to obtain financing from a bank. Our experts will prompt you if you need to conduct an audit and help with its implementation.
If the turnover subject to value added tax exceeds £85,000 in any 12 month period, the UK company must be registered for VAT. In most cases, you can register for VAT voluntarily, as long as your services or goods are no exception.
VAT reporting is submitted for each calendar quarter. You have 1 month and 7 days from the end date of the reporting period to prepare and submit a quarterly report.
It must be remembered that when registering a business for VAT, you have certain obligations:
- Charge correct VAT from your buyers
- Transfer the required tax to the tax office
- Submit reports
- Keep VAT records and reporting in order
Our specialists will register your company or business, and prepare and submit your VAT returns for you.
Payroll and registration on PAYE
All businesses in the UK that pay wages to their employees in any form must register with the Inland Revenue as a PAYE employer. This allows the employer to:
- Submit online payroll reports
- Receive online tax codes and alerts per employee
Receive warnings from the Tax Office if the reporting is not submitted on time or is incorrect
You must register for PAYE no later than the first payday. Registration takes about 6 weeks, and you cannot start registration earlier than 2 months before the first payment day.
After registration, the employer is obliged to submit reports online on time and pay taxes for their employees. In addition, within 22 days (19 if you pay by mail) of the month following the reporting month, the employer must make National Insurance Contributions for himself.
Please note that even if the company has only one director and he receives a salary (not dividends), the company must still register as an employer. Moreover, it is important to remember that if you have employees in your house (gardener, driver, nanny, etc.) to whom you pay a salary, you are also required to register with the tax office as an employer and pay wages through the Payroll system.
Imperial & Legal specialists will take care of the full management of your Payroll, as well as the preparation of payslips for your employees.