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Register a company at HM Revenue and Customs Print E-mail


Trade can be conducted through a limited Company or as a self-employed individual.

It is possible to save tax by trading as a company, but there are many other fees and expenses such as company accounts preparation to consider.

Once a new company is registered at Companies House, the director or company secretary must complete a new company form for H M Revenue & Customs.

There is tax legislation that treats the tax of very small companies as self-employed income called IR35 , so it may not be financially beneficial for very small businesses to register a company.

Sole traders register as self employed with HM Revenue & Customs.

and individuals are required to submit annual tax returns as separate legal entities. Tax returns for self-employed individuals are due by 31 October if HMRC calculate the tax liability, and 31 January if you want to calculate your own tax.

By asking HMRC to calculate your tax, you risk overpaying as they will not take time to identify tax deductible expenses and rules that benefit your tax position. A qualified tax adviser or chartered accountant will be in a better position to give beneficial advice.

Employers are responsible for deducting PAYE tax and national insurance from the salaries of employees, including full time, part-time, contract, temporary, casual workers and directors and paying it to HM Revenue & Customs.

New employers must obtain the New Employers starter pack from HMRC on 0845 60 70 143 and will be supplied within two working days.

Before allowing any worker to pay their own PAYE and national insurance, check with your local HMRC office whether they are eligible for a self-employed status. HMRC will apply tests to their individual circumstances to determine if they are self- employed.

Tax deadlines are available on the HMRC website and more information is available on the government website business link.

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