Are you planning to start your own company in the UK? Entrepreneurs today are quitting their jobs and focusing on starting their own company. However, what they fail to take into consideration is the corporate tax that they need to pay once they have opened up their business. If you are planning to start your business in the United Kingdom you have to pay corporation tax which is a corporate tax levied on the profits that companies make. The corporation tax is also levied on foreign companies with a UK branch and associations that trade in the European Union.
Starting a limited company is a great option, if you want to start your own business. One of the best benefits is that your company is responsible for everything it does and its finances are separate from your personal finances. However, while there are several benefits that limited company can enjoy in the UK, there are certain responsibilities as well and you need to be aware of that even before you start your own limited company. Paying your taxes is one of the important things that you need to be aware of when you are starting your own limited company.
With limited company you certainly have some advantages on your side because you can handle your own business the way you want it. Secondly, the corporation tax rate in the UK for limited company has been declining in the past few years and is expected to decline further in the future years. The current corporation tax rate for company profits from April 1, 2015 is 20%. In the past, the rates were higher and have gradually declined every year. In the year 2012, the corporation tax main rate for limited company was 24% and it went down to 23% in 2013 and dropped further in 2014 to 21% for companies that make above 300,000 GBP.
We have more to look forward to! The government has announced that the Corporation Tax main rate for 1 April 2016 is set at 20%. The rate for 1 April 2017 is 19% and sets it at this rate for 1 April 2018 and 1 April 2019. The rate for 1 April 2020 is set at 18%.
Entrepreneurs can certainly ensure that they have the right financial experts on their side that can help them with establishing their company and take advantage of the dropping corporation tax rates for limited companies. Limited companies can also claim available tax credits or deductions based on the amount of profit they make.
To find out more about your company incorporation or company formation get your free consultation visit: http://TaxTwerk.com/appointment
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