A simple tax guide for SME’s


Tax is everywhere at the moment, and it is something that worries a lot of business owners no matter how small or large their business is. For a sole trader, the due dates for tax are quite straightforward.

The only date that you really need to remember is the 31st of January. However, if you are a small to medium limited company, it can get a bit more confusing therefore, we have compiled this blog to help you.

Let’s start with corporation tax…

For any business, you pay corporation tax on any profits that you make. The typical time frame on corporation tax is that it is due nine months after your company's year-end.

Your company year-end will usually be at the end of the month when you first set it up. This is something that you must be wary of in case you have chosen to change this since setting up your business. Otherwise, it will remain nine months after your company year-end.

Moving into VAT…

If you have registered for VAT, this is usually due one month and seven days after your VAT period ends. For example, if your VAT period ends in December, it would then be due at the beginning of February. This will then be paid every quarter. Depending on your VAT registration, this can change and could be one of three possibilities.

What about PAYE?

You might even have PAYE. If you run a payroll scheme, you will need to both calculate and pay over tax as well as National Insurance that you have deducted from both your employees and from yourself as the employer. This is then paid on the 21st of every single month. However, if you are a small employer, this might only require paying every quarter.

Finally, your Personal Tax Return…

The main deadline for your Personal Tax Return is steadily approaching 31st January. This is one that most business owners will be aware of and consequently, they dread it. However, depending on your circumstances and the tax owed, you might be required to make a second payment on account on the 31st of July. This is something that you must check with your accountant to see if you are required to do so.

We understand that tax is something you might be worried about. After all, most limited companies do. Therefore, we recently released our tax-saving scorecard that utilises the S.A.V.E.T.A.X.E.S method to save you and your business money.

From here, we can support you in putting a plan in place to help cut down on your taxes without doing anything illegal. If you would like to check it out, click here.