Once all required documents are prepared, you can submit an online application through HMRC's website. Processing usually takes up to 30 working days, but this may vary depending on HMRC's review process and the completeness of the application.

In the UK, you can choose to file VAT returns monthly, quarterly, or annually, depending on the size of your business and your preferred reporting frequency. Generally, we recommend quarterly filing.

VAT rates vary depending on the type of goods and services. The main VAT rates are: Standard Rate (20%), Reduced Rate (5%), Zero Rate (0%) and Exempt Supplie. Please consult TB Accountants for specific advice.

HMRC uses a points-based penalty system for late VAT submissions. Each late submission will accrue a penalty point. Once a business reaches the penalty threshold of four points, a £200 fine is issued. Subsequent late filings will then incur an additional £200 fine.

Yes. Once you’re registered for VAT, you must submit VAT returns even if you have no VAT to pay or reclaim.

You must register for VAT if: ● Your taxable turnover in the past 12 months exceeds the £90,000 VAT threshold. ● You expect your turnover to exceed £90,000 in the next 30 days. Additionally, you must register for VAT regardless of your taxable turnover if: ● You are based outside the UK. ● Your business headquarters are outside the UK. ● You supply any goods or services to the UK (or plan to do so within the next 30 days). Businesses based in the UK trading below the threshold can choose to register voluntarily in order to reclaim input VAT.

From 1 July 2021, the UK introduced new VAT rules requiring online marketplaces (e.g. Amazon, eBay) to manage VAT on behalf of sellers: ● Marketplace Sellers: If selling through an online marketplace that meets VAT requirements, the platform is responsible for collecting and remitting VAT to HMRC. ● Direct Sellers: Businesses selling directly via their own websites must register, collect, and submit VAT independently. E-commerce sellers can reclaim VAT on purchases and, in some cases, obtain VAT refunds for exported goods.

● Retrospective VAT Charges: HMRC can backdate VAT liability, requiring businesses to pay VAT on all past transactions that should have been taxed. Late payments may also incur interest and late fees. ● Fines: The penalty varies depending on how long VAT registration has been overdue and the sales revenue during the period of non-compliance. The fine can range between 5%-15% of the VAT owed, or higher in severe cases.

If you sell goods through online platforms (such as Amazon, eBay, etc.) in the UK or EU countries, and your business involves the import or export of goods, you will also need an EORI number to handle customs procedures.

Any company importing/exporting goods from/to the UK must obtain an EORI number. This is also necessary for customs clearance (e.g. importing inventory into the United Kingdom). Following the UK’s withdrawal from the EU, UK EORI numbers are no longer valid for use in the EU, and vice versa. An exception applies to UK businesses with a registered office in Northern Ireland. Businesses based in Northern Ireland can apply for a UK EORI with the ‘XI’ prefix – this remains valid in the EU.

In the UK, the EORI number is issued by HMRC (Her Majesty’s Revenue and Customs). In EU countries, EORI numbers are usually provided by the national customs authorities.

For traders engaged in cross-border trade within the EU — including UK sellers exporting goods to the EU and sellers importing or exporting goods within the EU — it is also mandatory to register for an EORI number.

Each EU member state has its own registration system, but all EORI numbers are valid across the EU. If you conduct business in multiple EU countries, it is recommended to register in the first country where your customs activities take place. If you are a seller from a non-EU country and wish to sell goods to the EU or the UK, you will need to register for an EORI number in the respective country. For example, if you are shipping goods from China to the EU, you must register for an EORI number in an EU country in accordance with local customs requirements.

● Application within the UK: Typically, HMRC processes applications within 1–3 working days after submission, and applicants usually receive their EORI number shortly thereafter. ● Application within an EU member state (for an EU EORI number): Processing times may be longer, usually taking 5–10 working days, depending on the efficiency of the local customs authority. If all documents are complete and there are no special issues, the process is very quick. However, if information is incomplete or additional documents are required, it may extend the approval time. TB Accountants can assist you in preparing all required documents and follow up on the process to ensure you receive a valid EORI number as quickly as possible.

Compared to self-employment, registering a UK company not only affects how you hire employees but also enhances your brand’s commercial credibility. Most importantly, it provides liability protection and tax advantages.

A company must have a registered office address within the UK, which serves as the official address for statutory correspondence. This address is used to receive official letters, tax notices, court summons, Companies House documents, bills, bank documents, and so on. Without a valid registered address, your company may miss important legal and financial notifications, which could affect business operations. If you do not have a physical office, you can use a registered office address provided by an agent. We offer this service.

The choice of company type depends on various factors, including business size, tax planning, number of partners, and whether you intend to go public. Examples include: ● Private Limited Company (LTD) ● Public Limited Company (PLC) ● Unlimited Company ● Limited Liability Partnership (LLP)

After registering your company, you must meet ongoing compliance and reporting obligations to ensure legal and tax compliance. ● Confirmation Statement (Annual Return) ● Annual Financial Statements (Annual Accounts) ● Corporation Tax Filing ● PAYE & National Insurance Contributions ● VAT Returns (if applicable)

As a limited company, you can deduct business-related expenses in your tax filings, which reduces the company’s taxable profits and lowers your tax burden. Additionally, you may benefit from Capital Allowances and the Employment Allowance to help reduce costs.

If you fail to provide a registered office address that complies with these requirements, your company may be struck off the register at Companies House.

A registered office address service is suitable for the following groups: ● UK-based business owners UK business owners can use a commercial registered office address instead of making their residential address public, ensuring privacy. ● Overseas investors or entrepreneurs If you wish to register a UK company but do not have a UK address, a registered office address service can help you meet legal requirements. ● Business owners who want to avoid handling company mail Some registered office address services include mail management and forwarding, reducing administrative burdens on business owners.

When setting up a limited company, you must provide a registered office address and an email address. The registered address must: ● Be a physical address in the UK ● Be in the same country where your company is registered (e.g., a company registered in Scotland must have a registered office address in Scotland, and the same applies to Northern Ireland) ● Comply with any relevant regulations If you use a service provider’s address (such as an accountant or solicitor) as your registered office address, it must meet all these requirements.

A registered office address is where your company receives official correspondence from the UK government, HM Revenue & Customs (HMRC), and Companies House. The main benefits of using a registered office address service include: ● Protecting Privacy If you do not wish to make your home address public, using a commercial registered office address can protect your personal privacy and prevent your residential address from appearing on the Companies House website. ● Compliance with UK Legal Requirements Under the Companies Act 2006, all UK-registered companies must provide a registered office address which must be located within the UK. ● Mail Handling and Forwarding Professional registered office address services often include the receipt, scanning, and forwarding of official government correspondence, ensuring that you do not miss important postal correspondence. ● Suitable for Non-UK Residents and Overseas Entrepreneurs If you are an overseas individual or entrepreneur looking to register a UK company but do not have a local UK address, a registered office address service is the best solution to obtain a valid address. ● Enhancing Corporate Image Using a registered office address in London or another business hub can enhance your company's image and boost trust among clients and investors.

Compliance checks can cover: Self-Assessment tax returns (including Income Tax) Capital Gains Tax Inheritance Tax And other tax-related matters

Preparation is key to ensuring a smooth process – you may need to prepare several documents, including: Your tax returns for the relevant years Proof of income (e.g. payslips, bank statements) Receipts for any deductible expenses Records of any investments or capital gains Details of tax reliefs and allowances claimed Our team can help you organise and, in some cases, prepare these documents, ensuring that you meet all necessary requirements.

A compliance check is an official review conducted by HMRC to ensure that your personal tax affairs are in order. The purpose of this check is to confirm that you have paid the correct amount of tax in accordance with your income and other financial activities. These checks are thorough and aim to ensure that all your tax returns are accurate and compliant with current laws.

HMRC can initiate a compliance check for many reasons – it may be a routine check, or HMRC may be asking for additional evidence to check whether your financial affairs are fully compliant with current regulations.

To qualify for reclaim, the expense must be directly related to your business, and the supplier must issue a valid VAT purchase invoice that clearly shows the VAT amount. Examples include: Business Purchases: Stock, raw materials, production supplies, office supplies Equipment and Fixed Assets: Office equipment, machinery, furniture, fixtures Professional Services: Accounting, legal and consultancy fees, advertising, marketing, IT services, software subscriptions Transport and Travel: Company vehicles and maintenance, fuel and transport costs (business use only), business travel (excluding employee commuting) Rent and Utilities: Commercial rent, internet and telephone charges, business electricity, water, and gas bills Training and Employee Benefits: Business-related training courses, workshops, etc. Business purchases from overseas may incur import VAT during customs clearance. In these cases, the import VAT paid may also be reclaimable.

The refund request is therefore submitted as part of your VAT return for the same period, and the deadline for this is one month plus seven days after the end of the return period. The return period will typically be quarterly.

Refund Review and Processing HMRC usually processes VAT refunds within 10 working days Additional documentation may be requested if HMRC needs to review your reclaim amount Once approved, the refund will be paid directly into the business’s bank account, or by cheque if no bank details are provided

According to HMRC regulations, businesses must keep VAT records for at least 6 years. For transactions involving land, property, or long-term assets, a longer retention period may apply.

VAT Audits: Incomplete or incorrect records may trigger an HMRC audit or compliance check. Penalties and Interest: Errors or omissions can result in extra tax, fines, or interest charges being levied. Reclaim Request Rejection: Missing valid invoices or supporting documents may lead to input tax reclaims being disallowed.

UK businesses must maintain accurate financial records for all VAT-related transactions to ensure correct reporting and compliance. Key records include: Sales Records: Sales invoices, sales journals, credit notes Purchase Records: Purchase invoices, purchase journals, import VAT certificates (e.g., C79 forms) Other Financial Records: Bank statements, VAT returns submitted, VAT payment and refund history

Foreign businesses without a UK establishment but who have paid VAT in the UK (e.g. for exhibitions or goods purchases) may apply for a refund through the VAT Refund Scheme, provided: The applicant’s country/region has a VAT reciprocity agreement with the UK (e.g. EU countries) The goods or services were not used for UK sales but for overseas business purposes The refund application must be submitted by 30 June of the following year (e.g. the deadline for 2024 claims is 30 June 2025)

(1) Prepare and Submit Refund Documentation Complete the VAT Return form Provide purchase invoices showing the supplier’s VAT registration number and VAT amount (where applicable) Provide import documentation (e.g. C79 certificates) (where applicable) Provide business bank account details for receiving the refund (optional) (2) Submit VAT Returns Online (Making Tax Digital – MTD) HMRC requires all VAT-registered businesses to use the digital tax system (MTD for VAT) to submit returns. The process includes: Log into the HMRC VAT Online service, or MTD-compatible software (https://www.gov.uk/log-in-register-hmrc-online-services) Complete your VAT Return with the correct input/output tax amounts HMRC will process and confirm the VAT return status upon submission

You may need to apply for a Unique Taxpayer Reference (UTR) in the following situations: Registering for Self Assessment Setting up a limited company

Once you receive your UTR, make sure to keep it safe, as it will be required for all communications and tax filings with HMRC. If you need assistance with applying for or managing your UTR, our professional team is available to provide guidance and support.

You can apply for a UTR through the following methods: Online Application: This is the most convenient method. You will need to provide personal details, including your full name, date of birth, address, and National Insurance Number. Telephone Application: You can apply by calling HMRC’s helpline. During the call, you will need to provide relevant personal information and verify your identity. Postal Application: You can also download, complete, and send a paper registration form to HMRC by post. This method usually takes longer. Regardless of the application method, it is crucial to ensure that all information provided is accurate to avoid delays or rejections.

Once registered, you will receive your UTR by post within 15 days. If you are living abroad, it may take longer.

Meeting financial reporting deadlines is crucial for avoiding penalties. The deadline for submitting financial accounts will vary depending on your individual circumstances. This can include: Company Year-End – The end of your company’s financial year 9 Months After Year-End – Deadline to file annual accounts with Companies House 12 Months After Year-End – Deadline to submit the Company Tax Return to HMRC 31 January – Deadline for any self-assessment tax payments if applicable

Annual financial accounts provide a summary of a company’s financial activities over the accounting year. These must include the profit and loss statement, balance sheet, and other key reports required for regulatory compliance and tax filings. All registered companies in the UK are required to submit financial accounts.

Failing to file financial accounts and company tax returns on time can result in significant consequences, including: Fines and Penalties – Late filing penalties start at £100 and can increase significantly. Interest on Late Payments – HMRC may charge interest on unpaid tax. Potential Investigation – Persistent non-compliance could lead to an HMRC audit or compliance check. Dissolution Risks – Companies House may take action against businesses failing to meet filing obligations. Our team ensures timely submission, preventing unnecessary fines and regulatory issues.

HMRC offers several different relief and exemption schemes which may apply to your individual circumstances. These include: ● Private Residence Relief ● Business Asset Disposal Relief (Entrepreneurs’ Relief) ● Gift Hold-Over Relief ● Investors’ Relief ● Rollover Relief

CGT is payable when you sell, transfer, or dispose of an asset that has increased in value. The actual tax due is calculated based on the profit (gain), not the total asset value. You may need to pay CGT on: ● Property that is not your main home (e.g. buy-to-let properties, commercial real estate) ● Shares and investments (excluding ISAs and PEPs) ● Business assets, such as goodwill or equipment ● Valuable personal possessions worth over £6,000 (excluding cars) If you are a business or an individual making significant asset transactions, we can help assess your liability, ensure that it is declared correctly and maintain compliance with the latest tax regulations.

We have offered a basic guide to how CGT is calculated below. The amount of CGT you owe depends on the gain made, your total taxable income, and the type of asset sold. The calculation involves: ● Determining the Gain – Subtract the purchase price, costs of improvement, and associated selling expenses from the sale price. ● Applying the Annual Exempt Amount – Individuals benefit from an annual tax-free allowance (£3,000 in 2024/25). Companies will need to follow different rules under Corporation Tax regulations. ● Applying the Tax Rate – The CGT rate varies: 1. Basic rate taxpayers (with gains within the basic income tax band) pay 10% on most assets and 18% on residential property. 2. Higher or additional rate taxpayers pay 20% on most assets and 24% on residential property. ● Offsetting Losses – Any capital losses can be used to reduce taxable gains.

HMRC can initiate a compliance check for many reasons – it can be a routine check, or HMRC may even want to see additional evidence following a tax return declaration (for example, a large tax refund request) to check whether your business is fully compliant. Compliance checks can cover: Financial Accounts Corporation Tax VAT returns And other tax-related matters

A compliance check is an official review conducted by HMRC to ensure that your business tax affairs are in order. The purpose of this check is to confirm that your company has correctly declared and paid the required amount of tax, including corporation tax, VAT, and any other relevant taxes, in line with current financial legislation. It ensures your tax filings are accurate and in accordance with HMRC’s requirements.

During a corporate tax compliance check, HMRC will review various financial elements of your business. Preparation is key to ensuring a smooth process – you may need to prepare several documents, including: Your company’s tax returns and accounts Corporation tax payments VAT returns and payments PAYE and National Insurance contributions Any claims for tax reliefs or allowances Our team can help you organise and, in some cases, prepare these documents, ensuring that you meet all necessary requirements.

If an employer fails to register for PAYE on time, HMRC may issue penalties. There is no fixed amount for fines; the amount depends on the length of the delay and whether it was a deliberate act of evasion. Furthermore, failing to register or submit reports on time may prompt a more detailed and rigorous audit by HMRC, potentially increasing your administrative burden.

You must register as an employer on the HMRC website and sign up for the PAYE system. Once completed, you will receive an Employer PAYE Reference Number and an Accounts Office Reference Number. Typically, it may take up to 20 working days to receive your PAYE reference number. You should register at least 2 months before you begin paying your employees to avoid penalties from HMRC.

Keep detailed records of employee wages, and associated tax and National Insurance deductions Submit Real Time Information (RTI) reports on time, showing the latest employee pay and deductions Make regular payments to HMRC, covering deducted Income Tax, National Insurance (both employer and employee contributions), and company pension contributions Provide payslips, clearly showing gross pay, deductions, and net pay Submit end-of-year reports and summaries: issue a P60 form to employees, summarising annual pay and tax, and a P45 if an employee leaves your company

You need to register for PAYE if you are an employer and any of the following apply: You have employees You pay any employee more than £123 per week The wages you pay are subject to Income Tax or National Insurance Even if your employees earn below the tax threshold, it is advisable to register for PAYE if you provide taxable benefits (such as a company car or accommodation), or if you wish to maintain tax records that may affect their pension or benefit entitlements.

You must submit at least one confirmation statement every 12 months. Your 12-month filing cycle begins on one of the following dates: The date your company was incorporated The date you submitted your last confirmation statement You are required to file the confirmation statement within 14 days after the end of each filing cycle. Failure to file on time, or not filing at all, may result in financial penalties from Companies House, and your company could be forcibly struck off and dissolved.