In short: an English company pays Corporation Tax on its profits. VAT applies once turnover exceeds the HMRC threshold, or voluntarily. Taxes are charged at company level; the owner's personal taxes depend on where they are tax resident.
Main taxes
- Corporation Tax — tax on company profits. The rate depends on profit size: 19% for smaller profits, 25% for larger ones, with marginal relief in between.
- VAT — mandatory when 12-month turnover exceeds the HMRC threshold. Voluntary registration is possible earlier.
- PAYE — if the company pays salaries to employees in the UK.
- Dividends — how they are taxed depends on the owner's tax residence.
How we help
- Consultation. We explain which taxes apply to your company.
- Registrations. We help register with HMRC for Corporation Tax and, if needed, VAT.
- Calendar. We remind you about return and payment deadlines.
- Returns. Together with accounting we prepare and file your tax returns.
What we need from you
- Company and director details.
- Business activity, client countries and expected turnover.
- Bank statements and records of income and expenses.
Price
UK tax services — on request. VAT registration is not included in LTD formation and is ordered separately.
FAQ
Does the company pay tax if the director lives outside the UK?
An English company is UK tax resident and pays Corporation Tax regardless of where the director lives.
When do I need VAT registration?
When turnover exceeds the HMRC threshold. For some businesses voluntary registration pays off earlier — we'll go through it in the consultation.
Do I also pay tax in my home country?
That depends on your tax residence and how you take money out of the company. We recommend speaking to a tax adviser in your country.