Tax Computations

Since 2009, tax legislation has been a fundamental focus of the UK Government and numerous restrictions have been placed on companies and individuals that have tax liabilities

In order to increase tax revenues, HMRC are clamping down in several key areas and are dishing out hefty penalties for the slightest misdemeanour. Without knowledge of tax regulations, you could find yourself paying £1000´s in penalty fines.

There is no doubt that tax legislation is becoming complex and the constant changes and updates throughout the year make it difficult for busy executives and small business owners to keep on top of the rules. Not knowing about a tax law could prove very costly. The accountants at Numerate Accountancy ensure we stay abreast of legal changes to ensure you avoid falling into HMRC traps and specialise in:

• Personal Income Tax

• Corporation Tax

• Value added Tax (VAT)

• Tax rates & allowances

PERSONAL INCOME TAX

Most business owners or self-employed sole traders fall under the umbrella of personal tax regulations and the complex rules are time-consuming to learn, complex to understand and change year on year. Numerate Accountants remove the burden of researching the rules of personal income tax for you and ensure you void HMRC penalties. We will:

• Advise you of all relevant allowances, claims and exemptions so you don´t overpay tax charges

• Reduce the tax you pay on your investment

• keep more of the proceeds when you dispose of assets

• Lower the tax you pay on your earnings from employment or directorship

• Reduce your Inheritance Tax burden, so you can leave more of your estate to your beneficiaries

CORPORATION TAX

It is compulsory that every single company pays corporation tax therefore every company has to submit its Corporation Tax Return (CT600) to HM Revenue & Customs and pay tax well in advance. Tax bills can be expensive, but there are ways of reducing your Corporation tax liabilities by legal means.

We specialise in Corporation Tax and will ensure you benefit from our expert knowledge and advice by paying less on your tax liabilities. As part of our comprehensive service we will prepare your tax calculations, advise you of how you can benefit from tax breaks and deal with all correspondence with the tax authority on your behalf.

VALUE-ADDED TAX (VAT)

VAT is a complex tax imposition on consumers which is collected by businesses on behalf of HM Revenue & Customs. It is then the responsibility of business owners to calculate the amount of VAT payable under several different umbrellas and categories in which your business sits, i.e.

VAT registration is compulsory if your business exceeds the annual limit of £85,000 (in 2018) of taxable supplies, and VAT registration is voluntary regardless of exceeding the statutory limit.

To pay VAT you have to pay the difference of Output VAT - the amount you charge on sales or taxable supplies – and Input VAT - the amount you pay on purchases or expenses to HM Revenue & Customs which results in payable or receivable taxes. Complicated isn´t it? And that´s just the basics!

There are four types of VAT which are as follows:

• Standard rated

• Reduced rate

• Zero-rated

• Exempt

Example of reduced rate items:

• Home energy (also covers some small businesses depending on usage)

• Children's car seats

• Sanitary protection products

Example of zero-rated items:

• Drugs & medicines

• Public transport

• Books & newspaper

• New house building

• Water and sewerage

• Many types of food

• Children’s clothing and footwear

Example of exempt items:

• Insurance

• Postal services

• Betting & lotteries

• Land (including rent on property)

• Non-profit making education centres

• Health services provided by doctors and dentists