An Ultimate Guide to Paying Your Personal Taxes in the UK

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In this modern age where many people have started a small business, many businesses also have to deal with UK personal taxes. This is necessary for the UK tax code to be followed closely. Therefore, many business owners prefer to hire an accountant who can handle this for them. Although most accountants offer tax services, it is still important for the owner of the business to choose one that meets their needs and has enough expertise in UK tax laws.


Business Taxes and Personal Taxes 

One of the main differences between UK business taxes and personal taxes is the amount of money that will be charged. Most companies do not charge very high fees for paying their taxes. However, some business owners may find it beneficial to pay taxes even if they get an exceptionally low fee. There are UK tax advisors who are willing to offer advice on how best to maximize the amount of money paid. Here are some of the key differences between personal taxes and UK business taxes.


UK Commercial Tax Rates

To find out more about UK commercial tax rates, you can contact either the British Gas, British Insure and Builders’ Association or the British Gas Mortgage Company. These organizations can provide valuable information about commercial tax rates. For additional advice, you should consult a solicitor who specializes in UK commercial tax rates. You may also contact the HM Revenue and Customs Service. They can offer valuable information about commercial tax rates and all types of tax matters. If you want to find out more about qualifying for the highest rate of UK commercial tax, you should contact a chartered accountant.


Considerably Lower Compared to the Taxes of Other Countries

For many citizens of UK, the amount of personal taxes that they have to pay each year is considerably lower compared to the taxes of other countries. One of the main reasons why it is so much easier to file taxes by oneself is that it is very easy to file the taxes when filing UK taxes. In addition, the tax regulations are fairly easy to understand. Even though it is very easy to file personal taxes, it is also relatively easy to file UK tax returns by hiring an accountant or an it professional.


Various Tax Codes 

The other main reason why many people have chosen to file their UK business taxes by themselves is that it saves them time. When working with an accountant, the business owner has to spend a lot of time explaining the various tax codes that are used. They also have to prepare detailed reports that have to be sent to their clients or employers. If the business owner files personal income taxes by himself, they have to spend time explaining the tax codes to their clients and their employers. This may not necessarily be a problem for some, but if you have a business, then it can be a huge disadvantage.

Different Types of Tax 

There are two different types of tax that a UK citizen has to pay; income tax and corporate tax. These taxes are calculated based on one’s gross salary or wage received every month. A person who earns less than the applicable tax rate must pay the appropriate amount as personal income tax. On the other hand, a person who earns more than the tax rate must pay the corporate tax.


Federal Personal Income Tax Rates

Businessmen often run businesses from their homes. In this case, they will have to pay federal personal income tax rates. The rate of corporate tax is usually much higher than the personal income tax. Therefore, if you run your business from your home, it is best for you to pay in federal personal income tax rates to save money on the business taxes.


Aside from Personal Taxes

Aside from personal taxes, there are also some other kinds of taxes that you have to pay while running a business. In the UK, there are certain areas such as National Insurance contributions and Employment Tax. These two taxes are legally required by the UK government. Aside from these two taxes, there are some areas that are imposed by the government that you have to pay regardless of whether you have a business or not. These taxes include alcohol duty, cheese duty, and cider duty.



One important tax that you have to pay in the UK is property tax. In addition to personal income tax, you have to pay property tax if you have a residential property in the UK. If your property is owned by non-UK Residents, they have to pay property tax as well. However, the value of the property does not matter when applying for a property tax refund claim. If you are unable to return the property to its owner, then you must pay the full amount of the property tax.