Get started with business taxes
Gain an understanding of the taxes you must pay when running a business
If you run a business, you will have to pay taxes of some kind. Exactly which taxes you pay will depend on a number of factors, such as your business' legal status, annual turnover, whether you employ staff and taxable profits.
The main business taxes are Self Assessment (the system used to collect Income Tax), Corporation Tax and VAT. You may also need to think about National Insurance. Other taxes you may have to pay depending on your business are PAYE (Pay As You Earn) eg. if you employ staff and Construction Industry Scheme.
Am I trading or not? (video)
View this short HM Revenue & Customs (HMRC) video (4 minutes 36 seconds) will help you decide whether or not HMRC would consider your buying and selling, including e-marketplace activity, to be trading, and whether you need to tell them about it.
Tax guide for the self-employed (e-learning)
E-learning tool to help you understand your tax requirements when starting a business
If you decide to start your own business it is important to fully understand tax, National Insurance, business records and expenses. This HM Revenue & Customs e-learning course will provide you with the basic information you need to know.
What is Self Assessment?
Self Assessment is a system HM Revenue & Customs (HMRC) uses to collect Income Tax. Income Tax is usually deducted automatically from wages, pensions and savings. However, people and businesses with other income must report it in a Self Assessment tax return.
For further guidance see understanding Self Assessment and your tax return.
If you're self-employed you pay Class 2 and Class 4 National Insurance depending on your profits. Most people pay through Self Assessment. Read full guidance on National Insurance.
What is Corporation Tax? (video)
Short video explaining Corporation Tax and who should pay it
What is VAT? (video)
What is the Construction Industry Scheme? (video)
Short video explaining what the Construction Industry Scheme is, who should register and how it works