Taxation and arrangement is an important aspect of any businessman in U.K , we highly recommend anyone to consult our LA accountants in U.K to provide the professional opinion for your planning in how to reduce the tax liabilities legally . A lot of allowance could be claimed technically by the legal arrangement , however , it is a difficult subject , you must pay special attention to the abilities of your adviser , the best method is to consult our LA company developers or accountants in U.K as soon as possible .

The first type of tax in U.K is the VAT – value added tax , it is a tax on consumer expenditure , the VAT must be paid on the business transactions , imports and acquisitions , the business transaction of VAT includes but not limited to , supplies made in the U.K or the Isle of Man , by a taxable person , in the course of a business , and are not specifically exempted or zero-rated .What are the VAT rates ? There are three rates of VAT , the standard rate is 17.5% , the reduced rate is 5% , and a Zero rate in some special services or products in the exemption case . If your transaction is outside the UK or Isle of Man , no VAT be paid under any case .

The second type of tax in U.K is Corporation Tax , only the taxable income or profit are imposed the Corporation Tax , that means ,the income minor a lot of expenses and administration cost and cost of goods in the operation is equal to the taxable income or profit in the operation , we remind all companies in U.K must retain us to work the required account to the Government in time to reduce the late penalty of filing , usually , the companies are liable to penalties if they do not deliver a return by the statutory filing date , normally 12 months after the end of the accounting period , and a serious reminder must be informed that all records of sales and other business receipts as they come in , and retain the record ; keep back-up records to show where the income came from , the evidence includes but not limited to , invoices , bank statement , paying –in slips etc ; we highly recommend you to consult us to develop an accounting system as best as possible to suit your case .

The third type of tax in U.K is Capital Gain Tax , to simplify , when you sell any asset such as share or property in the incremental value , you must pay the CGT according to the standard rate . The definition is that a gain is an increase in value on the disposition , CGT must be imposed . To illustrate it by an example , you bought a property at 1/12/03 at the value of 1 Million , and then you sold the property at 12/3/05 at the selling price of 1.5 million , your gain of 0.5 Million must be arranged to pay the CGT according to the standard rate . However , some asset could be exempted from paying the CGT , for example , your private car , cash held in sterling , any foreign currency held for your own or your family’s personal use , jewellery , paintings , antiques and other personal effects that are individually worth less than 6000 sterling , United Kingdom Government Stocks , personal injury compensation , etc , please consult our LA accountants or company developer to learn more about it for your future planning .

Lastly , there are a lot of different tax in U.K unless your business is working outside in U.K , and a lot of credits must be arranged in U.K , we highly recommend you to consult our professional to provide our opinion .

                
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