Full article with thanks to: unbiased.co.uk/life/small-business/business-tax#introduction Introduction to small business tax Your business may have to pay a number of different taxes, such as: corporation tax income tax VAT business rates Employers’ National Insurance contributions capital gains tax What tax your business pays will depend on how it’s set up, whether or not you have employees, and other factors such as your business assets and premises. Primarily, your business will be taxed on its profits (the net amount of money it makes after losses and expenses). How this happens will depend on its structure. Sole traders pay income tax, as do partnerships (with partners submitting separate tax returns), and also Employees’ National Insurance contributions. Limited companies pay corporation tax. You may also have to pay business rates on your premises. If you supply VAT-able goods or services, and your taxable turnover is above a certain limit (currently £85,000) then you will need to register for VAT. …
