In need of some tax advice

Team_3

Hi all,
I'll keep this as short as possible, im in need of some tax advice please.

I'm from the UK
I own an online company i used to work on part time which i have since started full time this year.

When i do my tax at the end of the tax year its going to be 40%
As its an online company is there anyway to bring that % down? It seems crazy to me to pay 40% and then 20% vat, thats 60% gone..

Anyone have any tips?

Thanks guys.

Funky_Bold_Ribena

Perhaps get yourself acquainted with the actual tax bands and their implications?

00ec25

as the company is above the VAT registration threshold then it can afford to pay an accountant.

Not least because it will need to do quarterly VAT returns and the annual corporation tax return, let alone for you as its owner to understand dividends and personal taxation

morgani

If this really is a limited company then the tax rate is 20% unless you have profits over £300k.

You are simply an agent for HMRC for the VAT. If you were not VAt registered then your sales would be 20% lower unless you have had to absorb the VAT. You will then pay less than the VAT collected as you will either have input VAT to reclaim or you will be on the flat rate scheme.

If you have personal income as well that will make you a higher rate tax payer then it would be worth getting an accountant as there may well be tax savings to be made.

If you are actually self employed rather than a limited company and will be paying tax at the higher rate then also be yourself an accountant as the tax savings could be thousands.