United Kingdom
Accounting & Tax Compliance in the UK
Full compliance with UK accounting standards. HMRC filings, VAT returns, payroll, and Making Tax Digital.
Contents
- •UK Accounting Standards
- •Corporation Tax
- •VAT Management
- •PAYE & National Insurance
- •Making Tax Digital
- •Annual Accounts & Companies House
- •R&D Tax Credits
- •IR35 & Off-Payroll
UK accounting follows UK GAAP (FRS 102) or IFRS for listed companies. HMRC administers Corporation Tax, VAT, PAYE, and National Insurance. Making Tax Digital (MTD) requires digital record-keeping and submissions.
1.UK Accounting Standards
UK GAAP: FRS 102 (main standard), FRS 105 (micro-entities). IFRS for listed companies. Companies House filing requirements based on company size. Audit exemption for small companies (turnover under GBP 10.2m). ICAEW, ACCA, and CIMA are main professional bodies.
2.Corporation Tax
Corporation Tax rate: 25% (profits over GBP 250,000), 19% small profits rate (under GBP 50,000), marginal relief between. Filing deadline: 12 months after accounting period end. Payment: 9 months and 1 day after period end. Quarterly instalment payments for large companies. Loss carry-forward unlimited, carry-back 1 year.
3.VAT Management
VAT rates: 20% standard, 5% reduced, 0% zero-rated. Registration threshold: GBP 90,000 (2024). Quarterly VAT returns via MTD-compatible software. Flat Rate Scheme for small businesses. Reverse charge for construction services. Import VAT since Brexit for EU goods.
4.PAYE & National Insurance
PAYE (Pay As You Earn) for income tax withholding. National Insurance contributions: employer 13.8% above threshold, employee 8% (2024). Real Time Information (RTI) reporting to HMRC. Auto-enrolment pension contributions mandatory. Statutory payments: sick pay, maternity, paternity.
5.Making Tax Digital
MTD for VAT: mandatory for all VAT-registered businesses. Digital record-keeping required. VAT returns submitted via MTD-compatible software. MTD for Income Tax: phased rollout from April 2026. Quarterly updates to HMRC. Penalties for non-compliance.
6.Annual Accounts & Companies House
All companies must file annual accounts with Companies House. Micro-entity accounts: simplified balance sheet. Small company accounts: abbreviated. Medium/large: full accounts with audit. Filing deadline: 9 months after year-end (private), 6 months (public). Late filing penalties: GBP 150 to GBP 7,500.
7.R&D Tax Credits
R&D tax relief for innovative companies. SME scheme: enhanced deduction of 86% (from April 2023) plus 10% credit. RDEC (large companies): 20% credit. Merged scheme from April 2024. Qualifying activities: scientific or technological uncertainty. Documentation requirements.
8.IR35 & Off-Payroll
IR35 rules determine employment status for contractors. Off-payroll working rules: client determines status for medium/large businesses. Inside IR35: PAYE and NIC deducted at source. Outside IR35: contractor invoices as self-employed. CEST tool for status determination. Significant penalties for non-compliance.
Astropel provides comprehensive accounting services in the UK, ensuring full compliance and optimization.