What are my tax and accounting responsibilities?

If you've started a new business, or are thinking about starting a business, you need to think about your responsibilities to Inland Revenue: when and how much tax your company need to pay. Rates, thresholds and fees, as well as rules and regulations, can alter annually with changes being announced in the Budget and usually implemented from the beginning of a tax year. Over a year, a business owner has to make certain reports (returns) and payments to various government bodies. Some of these reports are made at the end of the tax year, some are made at the end of what is called an "accounting period" while others are made quarterly or monthly.

I want to become self employed

Income tax and National Insurance
As a sole trader you have to:
- register with HM Revenue & Customs as self-employed
- complete a self assessment tax return every year
- Pay Class 2 and Class 4 National Insurance Contributions (NICs)
For straightforward guidance on these subjects, see our guides on: Income tax self assessment
VAT
As a VAT registered business you have to complete a VAT return form for each tax period, usually every three months. This details how much VAT you:
- have charged your customers
- have been charged by your suppliers
- owe HM Revenue & Customs or are owed by them.
You will be sent your VAT Return towards the end of your tax period. You must return the form and payment (if appropriate), normally no later than one month after the end of your tax period. Please see VAT Guide to find out if you need to be register for VAT.
PAYE deductions and National Insurance
If you employ staff in you company you need to pay PAYE and National Insurance. If your business pays more than £1,500 per month to HM Revenue & Customs (HMRC), you must make monthly payments of PAYE and National Insurance. Please make a payment till 19th of each month. If your business pays less than £1,500 per month to HMRC, you may make payments of PAYE and National Insurance every three months. Every year you will have to complete the following:
- P35 employer's end of year return
- P60 employee's end of year summary
- P14 employee's end of year summary
- P11D return of expenses and benefits
For straightforward guidance on these subjects, see our guides on: PAYE and NI

I will be in partnership

Income tax and National Insurance
As a partnership you have to:
- register with HM Revenue & Customs as self-employed
- complete a partnership self assessment tax return every year
Each partner has to:
- complete a self assessment tax return every year
- pay their own Class 2 and Class 4 National Insurance contributions (NICs)
For straightforward guidance on these subjects, see our guides on: Income tax self assessment
VAT
As a VAT registered business you have to complete a VAT return form for each tax period, usually every three months. This details how much VAT you:
-have charged your customers
-have been charged by your suppliers
-owe HM Revenue & Customs or are owed by them.
You will be sent your VAT Return towards the end of your tax period. You must return the form and payment (if appropriate), normally no later than one month after the end of your tax period. Please see VAT Guide to find out if you need to be register for VAT.
PAYE deductions and National Insurance
If you employ staff in you company you need to pay PAYE and National Insurance. If your business pays more than £1,500 per month to HM Revenue & Customs (HMRC), you must make monthly payments of PAYE and National Insurance. Please make a payment till 19th of each month. If your business pays less than £1,500 per month to HMRC, you may make payments of PAYE and National Insurance every three months. Every year you will have to complete the following:
-P35 employer's end of year return
-P60 employee's end of year summary
-P14 employee's end of year summary
-P11D return of expenses and benefits
For straightforward guidance on these subjects, see our guides on: PAYE and NI

I want to register Private Limited Company (LTD)

Corporation tax
As a private limited company you have to:
- complete a corporation tax return (form CT600) every year
- supply a set of accounts with your form CT600
For straightforward guidance on these subjects, see our guides on: Corporation tax
Companies House filing
As a private limited company you have to:
- complete an Annual Return form every year
- supply a signed set of accounts to Companies House every year
VAT
As a VAT registered business you have to complete a VAT return form for each tax period, usually every three months. This details how much VAT you:
- have charged your customers
- have been charged by your suppliers
- owe HM Revenue & Customs or are owed by them.
You will be sent your VAT Return towards the end of your tax period. You must return the form and payment (if appropriate), normally no later than one month after the end of your tax period. Please see VAT Guide to find out if you need to be register for VAT.
PAYE deductions and National Insurance
If you employ staff in you company you need to pay PAYE and National Insurance. If your business pays more than £1,500 per month to HM Revenue & Customs (HMRC), you must make monthly payments of PAYE and National Insurance. Please make a payment till 19th of each month. If your business pays less than £1,500 per month to HMRC, you may make payments of PAYE and National Insurance every three months. Every year you will have to complete the following:
- P35 employer's end of year return
- P60 employee's end of year summary
- P14 employee's end of year summary
- P11D return of expenses and benefits
For straightforward guidance on these subjects, see our guides on: PAYE and NI

I want to register Limited Liability Partnership (LLP)

Income tax and National Insurance
As a limited liability partnership (LLP) you have to:
- register with HM Revenue & Customs as self-employed
- complete a partnership self assessment tax return every year
Each partner has to:
- complete a self assessment tax return every year
- pay their own Class 2 and Class 4 National Insurance contributions (NICs)
For straightforward guidance on these subjects, see our guides on: Income tax self assessment
Companies House filing
As a private limited company you have to:
- complete an Annual Return form every year
- supply a signed set of accounts to Companies House every year
VAT
As a VAT registered business you have to complete a VAT return form for each tax period, usually every three months. This details how much VAT you:
- have charged your customers
- have been charged by your suppliers
- owe HM Revenue & Customs or are owed by them.
You will be sent your VAT Return towards the end of your tax period. You must return the form and payment (if appropriate), normally no later than one month after the end of your tax period. Please see VAT Guide to find out if you need to be register for VAT.
PAYE deductions and National Insurance
If you employ staff in you company you need to pay PAYE and National Insurance. If your business pays more than £1,500 per month to HM Revenue & Customs (HMRC), you must make monthly payments of PAYE and National Insurance. Please make a payment till 19th of each month. If your business pays less than £1,500 per month to HMRC, you may make payments of PAYE and National Insurance every three months. Every year you will have to complete the following:
- P35 employer's end of year return
- P60 employee's end of year summary
- P14 employee's end of year summary
- P11D return of expenses and benefits
For straightforward guidance on these subjects, see our guides on: PAYE and NI

go back