Accountancy

The Difference between Corporation Tax and Sales Tax

When running a business, it is important to understand that you will always need to apportion a certain amount of profit to be able to satisfy certain tax obligations each year – these will differ depending upon the size of your business, your rate of income and exactly what it is that you provide as a service – but if you are running a larger business, corporation or conglomerate that sees a considerably high annual income, it is likely that you will need to pay corporation tax as well as sales tax on any goods or services that you provide. Accountants London and beyond will be able to look into helping you balance the books for both expenses, but we will be able to offer you a more dedicated service than most.

If you are running a limited company or an association, you will need to register for corporation tax. This is a levy that is applied to any and all profits that you may take on during any tax year, and, as with all tax deductions, it will depend entirely upon how much revenue your organisation is seeing on a yearly basis. Reliefs and rates may vary upon how long your accounting period is – and, of course, how much profit you turn over – but preparing for a company tax return can be tricky without the assistance of a tax accountancy professional. As dedicated Accountants Finchley businesses depend upon, our team are no strangers to corporation tax, nor how to file for it correctly.

Sales tax, or VAT, is a little different – regardless of whether or not you have accountants London based or elsewhere on hand to balance your books, you will always need to account for VAT in each and every service you provide. VAT is a public tax that goes towards helping improves public services – and it currently sits at 20% on each item or service sold, meaning that if your company is of a certain size or overturning a certain profit, and you will need to apply an additional fee to your sales to be able to cover for such deductions.

If you are running a medium to large corporation and are in need of professional support and guidance on all matters related to Corporation tax and VAT, call FinSol Tax Advisors today on 0800 840 2501 – and as some of the most talented and dedicated accountants London businesses depend upon, you can always be assured of fair book balancing that will never see you chasing fees.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s