An English company with one tax year has the following obligations:

In chronological order, from the accounting point of view, do the following:

Tax change dates:

English Mandatory registrations for businesses

– Privacy registration

All companies or businesses that handle a minimum of 3 pieces of information about their customers are required to register for privacy. If a company asks its customer for its Name, Address, Email Address, it is already mandatory under English law to complete this registration and renew it annually. Many companies ignore this kind of obligation, and many just wave at it, “..Oh I’ll do it…” and the like.

However, when it comes to the penalty for failing to provide a privacy statement, companies are in a hurry and looking for loopholes. The filing fee is £ 70 .- / year, so it doesn’t burden companies, but it’s better to pay that amount than to ask for a fine payment of the fine ..

GDPR registration

GDPR is an acronym formed from the initials of G eneral D ata P rotection R egulation, (meaning a general data protection regulation in Hungarian) any company or enterprise (including Self Employed) with at least 1 employee or 1 customer, 1 business relationship or even 1 data manager (this includes dormant companies as they are related to the accountant, they also manage the data of their shareholders, directors and secretaries.) must comply with this data protection law.

– Paye registration

Paye registration, in the Hungarian name: Employer registration. This should be done if the company wants to employ an employee. It consists of two numbers, one is the “Paye reference number” and the other is the “Office reference number”. These two are necessary for a English company to be able to pay. to its employees.

– Gateway registration

Government Gateway Registration must be done at HM Revenue and Customs.

You need to create this account in two cases:

Self Assessment Report – Personal Customer Portal
For managing, checking and querying a current account – Corporate Customer Portal

– MLR registration

MLR registration is mandatory for all companies that engage in financial activities. Examples are: Banks, Listed Companies, Insurers, Accounting Firms, Etc.

– VAT registration

VAT registration (VAT registration) is required if the company has reached or within a reasonable time captures a turnover of £ 85,000. As VAT registration is not mandatory up to this amount, a start-up, newly established English company can start with a competitive advantage over companies on the market, as it can sell its products and services 20% cheaper.

UTR Number Registration

There are two types:

Director UTR Number – Self Assessment Statement required (also).
Company UTR Number – This number is the primary tax number of the company.

An English company is required to submit the following returns at least once a year, which are:

Tax return request

Confirmation Statement Statement:

Company, material, or title changes must be reported here. In addition, you must specify who is responsible for the company’s decisions (PSCs) and how many percent.

This change in the share capital has taken place, and the SIC codes are already mandatory. (if not specified at the time of foundation or only partially)
 

Annual Account:

An English company was founded on May 15, 2016. End of tax year: May 14, 2017

The first full tax is from 15 May 2016 to 14 May 2017. In this case, a so-called Broken Tax, which will be broken from May 15, 2017 to May 31, 2017, will be created.

This is because the English tax authority (HMRC) aligns the tax year with the Companies House database for the first tax year, so that the returns after the first tax year can be submitted to both HMRC and Companies House at the same time. From this point on, every subsequent accounting tax year will be adjusted to this date, so the company will be taxed for the following tax year:

From 01/06/2017 to 2018/05. and so on.
Some of the declarations have a significant reporting deadline, while others have to be submitted on time.
Corporation Tax – CT600

Staying with the above example, our company expired on 17/05/2017 with the tax of 2016/17, so you will have to submit a tax return, which you will have to submit within 9 or nine months, or pay the corporation tax.

In other words, nine months after the expired tax year, we have set aside the amount of tax that may have been incurred – in 9-month installments – and pay the total amount of the unpaid tax to the tax authority before the deadline.
 

VAT Return (VAT)

Companies that have already reached the current turnover limit (which represents £ 85,000 this year) or companies that voluntarily register for VAT and even £ 85,000 are required to declare VAT. – No significant traffic has been achieved, but you want to make taxable traffic.

VAT returns are quarterly, the deadline for preparing returns and paying VAT is the 7th of the second month following the end of the reporting period.

(for example, the deadline for submitting a declaration for the period from January 1 to March 31 is May 7)

Reporting Periods:

January – April – July – October
February – May – August – November
March – June – September – December

From April 06, 2021

The first day of the 2021/22 tax period. The period is from April 6, 2021 to April 5, 2022.

The most important change is an increase in the minimum hourly rate. For those over 25, the new minimum hourly rate is £ 8.91.

 
 
The Personal Allowance rate increases to £ 12,570 annually, meaning annual income of £ 12,570 is tax-free.
Tax rates:

Dividend tax

Dividend tax rates

There is no change in the dividend tax rate in 2021/2022:

• The tax-free dividend subsidy is £ 2,000
• Basic-rate
• A higher rate 32,5%
• A additional rate   38,1%

If you already have at least 1 full tax year in the UK, you will most likely have an extra tax payment. If so, it's for you
you can claim a tax refund!

If you are an employee (and already have a closed tax year) and NI and TAX have been deducted from your salary, you can already see if more taxes have been deducted from you in the past year than you should have… If more taxes have been deducted from you, then it can be reclaimed!

If you are both an employee and a self-employed person in England, you can already see if more taxes have been deducted from you in the last year than you should have… If more taxes have been deducted from you, you can claim it back!

If you are moving back or have already moved back to Hungary, you can see if more taxes have been deducted from you in that year than you should have… If more taxes have been deducted from you, you can claim it back!

Tax Refund Procedure:

How to withdraw money from the company?

The main purpose of entrepreneurial activity is profit and gaining wealth. One of the most common questions when planning a business is

how owners and / or managers can “take” their profits out of their business.

There are basically three options:

 
 
In general, if you have both employee and owner status in the company, you can earn the following tax-free income per capita:

As an employee: £ 9,568 / pound / year
As owner: £ 2,000 / year

Total: you can withdraw £ 9,568 + 2,000 = £ 11,568 a year from the company tax-free.

In order to payroll, the first step for companies is to register with their employer, i.e. PAYE. As a result, the company becomes an employer and the opportunity to calculate the wages of its employees opens up. The registration period usually does not exceed three weeks. So, if we want to pick up / pay a salary to an employee on time, this registration has to start in time.

There is no need to register with the PAYE scheme for a company that does not pay more than £ 113 a week to any of its employees and does not receive cost reimbursement and other benefits to employees. Employees have no other job and / or do not receive a pension.

However, payroll accounting needs to be prepared and records kept. Employee payroll is accounted for during payroll accounting or other things such as:

Tax and national insurance contributions are deducted from the salary. There may also be other deductions such as student loans and pension contributions.

During payroll accounting, an FPS report must be sent to HMRC, which includes employee payments and deductions.
After payroll calculations, the contributions payable must be paid to the HRMC by the 22nd day of each month (by post by the 19th).

Payroll accounting can be set to Weekly, Biweekly, or 4 Weekly accounting upon receipt of the pay registration number (at the company's registered office address).

 
 
At the end of the tax year, the company must report the annual aggregated payroll data in connection with payroll accounting and issue the P60 annual payroll summary form to its employees.
Employees leaving during the year must be issued and issued a P45 form containing their calculated wages and deducted taxes.

In an employee relationship, full-time working hours correspond to 37.5 hours per week.

If you spend more time at work, this should be noted as overtime on the pay slip.

If the time spent working does not exceed the working time of the full-time job, you are employed part-time (Part Time)

Its working hours are not limited, usually from 2 to 4 to 6 hours a day, but can be up to 2 hours a week.

Self Employed determines working hours themselves, so many make the mistake of occasionally working more than 8 hours a day.

In addition, if you go on leave, you will not receive wages for the same period as employees in employee status.
 

Entitlement to leave

A full-time employee is entitled to 28 days of paid annual leave, which already includes bank holidays. A full-time employee has 28 days, while a 4-hour employee has 14 days off.
 

Sick leave, sick pay in England

Statutory Sick Pay (SSP)

Sick leave and sick pay can be granted for a maximum of 28 weeks per year. (if the employee meets the conditions for payment of sickness benefits)

The first 7 days of sick leave are certified by the employee, after 7 days a medical certificate is required.

Sick pay is £ 88.45 per week.

A person entitled to sickness benefit who:

- Missing 4 or more days continuously from work

- reported his illness to his employer

- at least £ 112 gross earnings per week

- the employee presents the certificate about the illness (self-certification for the first 7 days, then medical)

- did not exceed 28 weeks of age.

Do you have any questions? – Then do not hesitate to contact us

at any of our contacts!

Phone: +44 (0) 1357 – 340 – 000

Email: accountancy@symfalogic.com or angolkonyveles@gmail.com

Skype: Symfalogic Corporation

 

Personal Allowance

The Personal Allowance is the amount of income a person can get before they pay tax.
Allowances 2021 to 2022 2020 to 2021 2019 to 2020 2018 to 2019
Personal Allowance £12,570 £12,500 £12,500 £11,850
Income limit for Personal Allowance £100,000 £100,000 £100,000 £100,000

The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.
 
 
Allowances 2012 to 2013
Personal Allowance for people aged 65 to 74 £10,500
Personal Allowance for people aged 75 and over £10,660
Income limit for Personal Allowance £25,400

Married Couple's Allowance

Married Couple’s Allowance could reduce your tax bill by between £353 and £912.50 a year.

You can claim Married Couple’s Allowance if all the following apply:

you’re married or in a civil partnership
you’re living with your spouse or civil partner
one of you was born before 6 April 1935

For marriages before 5 December 2005, the husband’s income is used to work out Married Couple’s Allowance. For marriage and civil partnerships after this date, it’s the income of the highest earner.

We propose that you should establish your own company as soon as possible!
Why? Because:

Because you get into the English pension scheme after a 10-year-long legal relationship as an employee and you can be entitled to the English basic pension automatically, which is now 155 Pound! This is 620 Pound/month!

This sum can be also obtained if you do not live in England.
Well, do you think it is worth its while?
It means that by paying a monthly contribution of 13.- pound you can already be entitled to 620.- pound after 10 years!!!

(+ in addition to the pension obtained after the working years in other contries!!!)
We think that it is worth the price!

 
More information in the this link: