Tax System in the UK

Previously, the tax rate on profits before April 2015 depended on the size of the profits and was divided into two categories ‘small profits rate’ and ‘main rate’. However, since April 2015, the tax system was simplified, and therefore the ‘small profits rate’ and ‘main rate’ of Corporation Tax were organized, providing UK companies a single rate of Corporation Tax.

The current Corporation Tax rate for company profits in the UK is 19%.

In April 2023, new corporate tax rates and small profits thresholds will be implemented allowing an increase in the Corporation Tax up to 25%.

Category 1: Businesses with profits of £50,000 or less, will continue to be taxed at 19%.
This category represents 70% of companies registered in the UK and therefore the majority of businesses will continue to benefit from the same current tax rate.
Category 2: Businesses with profits of £250,000 or greater, will be taxed at the full rate of 25%.
N.B. The new tax system will take into consideration companies with profits between £50,000 and £250,000 and will be taxed under a new reduced relief system.

A VAT number can be obtained in two weeks (UK bank account required). A VAT number is granted by the UK tax authorities; SFM cannot give any guarantee that it will be granted .VAT rate is of 20% as of 4th April, 2011 (previously 17.5%). VAT becomes mandatory only if the company’s turnover exceeds £77,000 within the last 12 months of operation.

When is it necessary to send in a tax declaration to the tax authorities?

Within nine months after the anniversary of the company.

Example: If the company was registered on 14th September 2010, there will be a nine-month period from 14th September 2011 for preparing and submitting the tax declaration. SFM will be able to contact you at the appropriate time to request the necessary accounting documents from you.

UK Accounting Price Sheet

The following price sheet includes the following services:
  • bookeeping;
  • balance sheet;
  • financial statement;
  • tax calculation; and
  • tax filing with authorities.
Transaction / Entry Price
1 - 25 £ 1,500
25 - 75 £ 1,950
75 - 150 £ 2,500
150 - 300 £ 2,950
+ 300 Upon request
Dormant Account
Company had no activity since incorporation (ie. no bank movement, no supplier invoices, no client invoicing).
£ 350
Non-Trading Account
Company had no financial activity in the 'last financial year' but had an activity in any prior periods.
£ 750
VAT declarations & ECSL returns Price
UK quarterly VAT declarations £ 200 per quarterly return
UK VAT declaration for 'Dormant' or ‘Non-Trading’ £ 90 per quarterly return
UK EC Sales list declarations (ECSL) £ 90 per quarterly return

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