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Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
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Just4contractors.com > Help & Advice > Taxation
Do I have to pay Taxes?
Although I'm no tax expert, even I know that the answer to this question is (unfortunately) Yes!
However, you should get advice from your Accountant or Tax Adviser to ensure that you only pay what you have to and nothing more. In all developed countries throughout the world, Government benefit from significantly from receiving taxes that shouldn't really be paid. Make sure that you don't add to this.
The type of Tax and the amount of tax that you pay will be determined initially by the way that your business is operating. Tax is applied differently if you are trading as a Limited Company for example than it is if you are a sole trader or partnership.
As most professional freelance contractors will either trade under the auspices of a Limited Company (either directly or through an Umbrella Company, we will focus our attention of the taxation of limited companies.
The taxation that a limited company has to pay falls into the following categories;
1. Corporation Tax
2. Employer's National Insurance Contributions (NICs)
3. VAT
In addition, you are responsible for the collection and payment of the personal taxes company directors and employees
Most Company Directors are captured within the Self Assessment process, so you'll need to know about that and you'll also need to understand the tax treatment of business expenses.
A lot to learn!
Although we provide you with a high level overview and pointers to find more information, please do take professional advice.
See Also
HMRC Compliance
Choosing the Right Business Structure
Recommended Links
HMRC Employer Guides
HMRC Guide to Self Assessment
Although I'm no tax expert, even I know that the answer to this question is (unfortunately) Yes!
However, you should get advice from your Accountant or Tax Adviser to ensure that you only pay what you have to and nothing more. In all developed countries throughout the world, Government benefit from significantly from receiving taxes that shouldn't really be paid. Make sure that you don't add to this.
The type of Tax and the amount of tax that you pay will be determined initially by the way that your business is operating. Tax is applied differently if you are trading as a Limited Company for example than it is if you are a sole trader or partnership.
As most professional freelance contractors will either trade under the auspices of a Limited Company (either directly or through an Umbrella Company, we will focus our attention of the taxation of limited companies.
The taxation that a limited company has to pay falls into the following categories;
1. Corporation Tax
2. Employer's National Insurance Contributions (NICs)
3. VAT
In addition, you are responsible for the collection and payment of the personal taxes company directors and employees
Most Company Directors are captured within the Self Assessment process, so you'll need to know about that and you'll also need to understand the tax treatment of business expenses.
A lot to learn!
Although we provide you with a high level overview and pointers to find more information, please do take professional advice.
See Also
HMRC Compliance
Choosing the Right Business Structure
Recommended Links
HMRC Employer Guides
HMRC Guide to Self Assessment
