Factsheet: tax pointers for SMEs

Businesses’ tax contributions play a vital role in funding our schools, hospitals and public services. But when business find themselves in a dispute with the tax authorities valuable time and energy is lost. If your business is found to be in the wrong, you could face consequences ranging from interest and penalties, all the way up to criminal prosecution. Getting your recordkeeping and tax payments right from the start can help avoid real difficulties down the line. This process starts with knowing what taxes you might have to pay, some key tax reliefs you might be able to claim, and how to set up the right systems to collect, pay and record your taxes.

It is your business’ responsibility to make sure all tax returns and filings are completed accurately and received by HMRC in time. It remains your responsibility even if you employ an accountant or tax adviser.

You will also need to:

• Pay any tax your business owes
• Account for any tax you collect (for example VAT paid to you by customers)
• Set up a PAYE scheme and operate PAYE correctly if you have any employees.

This factsheet gives an introduction to six parts of the tax landscape that affect many SMEs, signposts you to links with more information, and includes some additional resources.

1. Corporation Tax
2. R&D Tax Credits
3. Business Rates
4. National Insurance Contributions
5. PAYE
6. VAT

These are not the only tax issues that could affect your business. This information was correct as of 6 April but may not have been updated for any more recent developments. If you want to know more, and understand the ways these taxes relate specifically to your business, you should speak to a specialist adviser.