When starting a business in the UK, it is important to understand your tax status. This is because it will determine how much tax you need to pay and the type of tax you will be liable for. Knowing your tax status can also help you plan for the future and ensure that you are compliant with the law.
In this article, we’ll explain how to find your tax status in the UK. We’ll cover the different types of taxes you may be liable for, how to register for taxes, and how to check your tax status.
Types of Taxes
The first step to finding your tax status is to understand the different types of taxes that you may be liable for. In the UK, there are three main types of taxes: income tax, corporation tax, and value added tax (VAT).
Income tax is a tax on your income, such as wages, salaries, and profits from self-employment. Corporation tax is a tax on the profits of companies. Value added tax (VAT) is a tax on goods and services.
Registering for Taxes
The next step is to register for the taxes that you are liable for. To register for income tax, you need to register with HM Revenue & Customs (HMRC). To register for corporation tax, you need to register with Companies House. To register for VAT, you need to register with HMRC.
Once you have registered for taxes, you will be given a unique taxpayer reference (UTR) number. This number is used to identify you to HMRC and is important for filing your tax returns.
Checking Your Tax Status
Once you are registered for taxes, you can check your tax status. To do this, you need to log in to your HMRC online account. Once you are logged in, you will be able to view your tax status, including the taxes you are liable for and the amount of tax you owe.
You can also view your tax returns and any correspondence from HMRC. This is important for ensuring that you are compliant with the law and paying the correct amount of tax.
Finding your tax status in the UK is an important part of setting up a business. It is important to understand the different types of taxes you may be liable for and to register for them. Once you are registered, you can check your tax status and view your tax returns. This will help you to ensure that you are compliant with the law and paying the correct amount of tax.