Business Tax Accountants for Startups

Corporate tax accountants work with companies of all sizes to manage their records and analyse complex financial information.

The difference between financial accounting and tax accounting is in the methods used to record sales and purchases based on either accrual or cash. Cash bookkeeping only tracks when money enters or leaves a bank account. Accrual bookkeeping records when the money was earned or owed. Most larger companies use accrual and Accountancy Cloud does accrual from day one so there's no painful transition later.

We choose to integrate our platform and services to the cloud.

Broadly speaking there are four main types of business tax that UK companies must declare and pay to HMRC. These are:

• Corporation Tax

• Income Tax

• VAT

• National Insurance

Each of these UK Business taxes has vastly different rules, regulations and methods by which they are calculated.

The tax year runs from the 6th April to the 5th April the following year.

This is why your accountants, bookkeepers and financial advisors will label yearly reports, summaries and filings under “Tax Year 2022/23” or “2022-23 Financial Period”.

Nowadays the best business tax accountants are found online. If you search for one in person then you will be limited by your location, your budget and their schedule.

With online tax accountants you can get high quality tax services at a cost that suits you. With the right business tax support you’ll be able to scale up their services alongside the success of your business.

Both accountants and specialist tax accountants are highly skilled professionals with a tremendous grasp of all things mathematics. They are organised, efficient and work to save your company money.

However, accountants have a much broader knowledge span. They have to not only draw business plans out from your bookkeeping but also manage cash flow and improve your financial health.

A business tax accountant is much more specialised. They must review figures, comply with tax law, use regulations to reduce your yearly taxes and implement and manage electronic systems for bookkeeping, accountancy and tax. As a result, you’ll find business tax specialists working with a variety of businesses from corporations and agencies to non profits and startups.

That depends entirely on your company type, how much you earn as well as a number of other factors. Business taxes can cover VAT, Income Tax, National Insurance, Corporation Tax etc. Different types of businesses will face different regulations, for example; Sole-traders have a completely different method of calculating and paying Income Tax than Partnerships or Limited Companies.

A business tax accountant will be able to examine your business model and inform you how best to calculate your entire business tax obligations.

Without going into to much detail, the main business tax rates are:

Corporation Tax

As of 2024, the corporation tax rate in the UK is structured as follows:

1. Main Rate: 25% for companies with profits exceeding £250,000.
2. Small Profits Rate: 19% for companies with profits up to £50,000.
3. Marginal Relief: For companies with profits between £50,000 and £250,000, there is a tapered rate that effectively increases the tax rate progressively from 19% to 25%.

These rates have been in effect since April 1, 2023. For companies with associated companies, the profit thresholds for the different rates are divided by the number of associated companies worldwide​ (GOV.UK)​​ (GOV.UK)​​ (GOV.UK)​​ ( Worldwide Tax Summaries Online )​.

Income Tax

• Basic (up to £37,700 per annum) - 20%

• Higher (up to £150,000 per annum) - 40%

• Additional (over £150,000 per annum) - 45%

VAT - 20%

• Annual registration threshold - £85,000

• Annual deregistration threshold - £83,000

• Reduced rate supplies - 5%

NICs - 13.8% on employee earnings over £758 per month. This threshold represents the secondary threshold, above which employers must pay NICs on their employees' earnings​ (GOV.UK)​​ (Taxoo)​​ (Money Donut)​​ (123 Financials)​.

For employees aged under 21, apprentices under 25, and certain other specific categories, different thresholds and rates might apply, but the standard rate for most employees remains at 13.8% for earnings above the secondary threshold of £758 per month​ (Money Donut)​​ (Spendesk)​.

The deadline for a tax return in the UK is 12 months after the end of the accounting period that it covers. You’ll have to pay your Corporation Tax on a different deadline which is usually 9 months and 1 day after the end of the accounting period.