Setting up a limited company can bring with it a number of responsibilities, including several taxes that you need to pay over the course of the year.
While this may seem daunting, don't be put off, as you can get expert advice from your dedicated PayStream accounts team, who will help you keep on the right side of HMRC.
One of the first things you need to think about when you set up a limited company is how you're going to pay yourself. Usually, this is done through a mix of salary and dividend, with the former liable to Pay-as-you-earn (PAYE) tax and National Insurance contributions.
These are payable every quarter, but your dedicated accounts team will calculate how much you have to pay and let you know when it's due so you don't miss the date.
If your company becomes registered for VAT, you'll be responsible for paying 20 per cent VAT on all invoices that are raised by your company. Again, you need to inform HMRC of these figures quarterly and your dedicated accounts team will send you the calculations for review, along with details of the required payment. They will then submit the agreed return to HMRC on your company's behalf.
Following your company's year end, you'll be expected to prepare and file your statutory accounts, but don't panic - your dedicated accounts team will prepare draft accounts for you and give you a call to discuss the details.
They will also provide you with advice on sensible tax planning, before you decide on your final dividend for the year.
Once you've signed and returned your accounts, your team will file them at Companies House on your behalf.
Any income you receive for work carried out through your company is classified as 'sales'. Your sales less your genuine business expenses, generate a profit. Profits attract a corporation tax of 20 per cent. The dedicated accounts team will discuss this with you in conjunction with your annual accounts and payment will usually be due nine months after your company year-end.
Finally, you'll have your annual self assessment form to complete, which details your personal earnings and calculates any additional personal tax which is owed to HMRC - PayStream offer a Personal Tax service to help with this.
Don't struggle alone with your new responsibilities. We are on hand to help you along the process to ensure you have time to focus on your work and personal life - just another reason why you can count on PayStream.