Starting your own business can either be an exciting or frightening process depending on whether your finances are in order.

As an entrepreneur, you may know a thing or two about the world of finance, but taxes are a whole different ball game. If you've ever asked yourself, "How do I pay my taxes?" and have yet to come up with a solid answer then you may be in need of an accountant who can help guide you through the process.

If you're an SME in the Brighton area and have questions about your business tax, then you've come to the right place. In this blog post, we'll cover all the bases including:

- What are the different types of business tax?

- Claiming certain kinds of tax relief

- Who can help with my business taxes?

Which Tax Types Can Accountants Help With?

It may not surprise you that business tax requirements differ based on various factors, including income, profits, your business structure, and more.

This can make the initial process of understanding your tax planning a difficult hurdle to overcome, so let's begin with a basic overview of a couple of tax types you can expect now that you've started your business venture.

Corporation Tax

There are a few types of tax that business owners and accounting practices alike must understand - corporation tax being a core one.

Corporation tax is paid based on the profits your company makes before any dividends are taken out. It is crucial to remember, however, that you should still submit a corporation tax return if your company made a loss and you suspect you don't owe any corporation tax.

In 2022, tax is set at 19%, and this rate generally applies to all companies. Next year, however, a variable rate ranging from 19 to 25% will be introduced with companies that take in profits over £250,000 being taxed the hardest.

Corporation tax is submitted annually via HMRC's online 'CT600' form 9 months after your company's year-end period. Unlike some other taxes, corporation tax is not something that the government will remind you to calculate and submit, so it is down to SME owners like you (or indeed, your accountants) to stay ahead of it.

Staying compliant and avoiding getting overwhelmed by your corporation tax can detract from many aspects of your business. If you're in the Brighton & Hove area, the experienced team of accountants at Atkinsons can help, saving you time and ensuring your finances remain accurate.

Value-Added Tax (VAT)

VAT is that 20% extra applied to virtually everything you pay for as both a buyer and a customer, which makes it such a ubiquitous tax. Most people, regardless of whether they own a business or not, are aware of VAT as it usually shows up everywhere, from the receipt of your grocery shop to a trader's invoice.

Within the realm of business, VAT is applicable to any product/service-providing firm whose turnover exceeds £85,000, and it exists along the chain of purchase from supplier to buyer to customer. In fact, VAT has different names in different places along this chain.

• From supplier to buyer, it is known as Input VAT
• From buyer to customer, it is known as Output VAT

As you can see, there is a wide range of tax types that your business should be aware of - plus many more still! If you want the guesswork taken out of your business tax, you need an accountancy firm with proven knowledge and expertise.

Our Brighton-based team of young experts is adept at the latest cloud accounting tools like Xero to ensure your tax processing is bulletproof. Get a full no-obligation quote today.

What Tax Relief Can My Business Claim?

If you've got to this point in the post and are concerned that you're going to be in a perpetual battle for the bottom line, well you're certainly not alone. But fear not - there are some forms of tax relief that small and medium-sized businesses can take advantage of to save on that vital cash flow.

Now that you're clued up on the major tax types that you may need to pay, you’ll be relieved to know that tax relief is also available. Let’s take a look.

Research and Development (R&D) Tax Relief

When you own a business, every day is a school day. The key to a successful business is growth, naturally. And a key way to grow is by investing in R&D to learn more about your industry and become a true innovator and expert within it.

R&D tax relief is available and can apply to a range of businesses and include simple purchases like books and courses all the way to broader market research and the building of prototypes. If it is relevant and used to advance you within your field, then it counts as R&D and can be claimed back. As an SME, you can claim R&D tax relief if you have less than 500 staff and a turnover under the equivalent of 100m Euros.

There are also costs that cannot be claimed back on, including the production and distribution of goods and services, capital expenditure, cost of land, patents and trademarks, and rent.

With access to qualified accountants, you'll never have to doubt whether your R&D claims are legitimate or not and you can focus on business growth.

Vehicle and Equipment Tax Relief

Business innovation efforts like R&D are noble - even essential - in your business journey, but how are you going to achieve half of the business objectives you hope to attain if you don't have access to the more basic elements of a modern business?

Luckily, justifiable business purchases such as office equipment and even car lease payments can be claimed as business expenses. This allows companies that have high equipment spending to achieve their personal business goals and stay on track.

Subsistence and Business Lunch Tax Relief

Similarly, you won't keep your business on track if you and your employees aren't well fed. Luckily, you can also claim back on meals consumed outside of your workplace.

Looking for an Accountant in Brighton?

Whether you're new to owning a business or experienced enough to know that you want to stay far away from your tax affairs, the young group of experts at Atkinsons Accountants are on call to help. We will guide you through your digital accounting needs with bespoke packages, cloud accounting expertise, and sixty years of experience serving customers in the Brighton & Hove area.

To know more about our range of business finance services, request a callback for an initial consultation with us. From there, we'll be happy to speak to you regarding any business advice you need.

Request a full no-obligation quote with Atkinsons today to get a hold of your business finances.