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HMRC Business Tax and Registration

Once you have registered a business, you might need register for certain business tax.

Corporation Tax

If you run your business as a limited company, you must pay Corporation Tax on profits from doing business. You will need to register with HMRC for Corporation Tax service within 3 months of starting to do business. This includes buying, selling, advertising, renting a property and employing someone.

Self Assessment

If you run your business as a sole trader, you keep all your business’s profits after you’ve paid tax on them. Self-employed pay Income Tax on your profits, Class 2 and Class 4 National Insurance. As a self-employed you pay tax through Self Assessment.

Employer PAYE

If you intend employing staff, you’ll need to register as an employer with HMRC.​ You must register even if you are employing yourself as the only director of limited company. HMRC will issue a reference number, then you will need to set up a Pay As You Earn (PAYE) scheme to run payroll.

Construction Industry Scheme (CIS)

If you are working in the Construction Industry as a subcontractor or contractor, then you need to register with HMRC for the Construction Industry Scheme (CIS). Contractors must register for the CIS and deduct money from a subcontractor’s payments and pass it to HMRC.

VAT registration

If your turnover is over £85,000, you must register for VAT. You can register voluntarily if it suits your business, for example if you sell to other VAT-registered businesses and want to reclaim the VAT.

You can register your business taxes online using your Government Gateway user ID and password to sign in. If you’re not set up yet, create your business tax account on GOV.UK website.