Tax obligations to HMRC

Here we explain what the Tax Obligations to HMRC are of running a company, in the UK, and various filings and returns you will need to submit to them.

Tax Obligations

When you run a company, you also need to pay your fair share of tax. This is to help fund the government budget, so they can address certain economic externalities, and pay for the public goods and services you use.

Tax is an area that can get very complicated, very easily, very fast, and if you’re just starting out, and you are not a tax expert, we recommend keeping this area as simple as possible!

In the following sections of this guide, we define the main types of taxes your business will likely need to pay to the Government (HMRC).

The main ones are:

• VAT - based on Company Sales
• Company (Corporation) Tax - based on Company Profits
• Dividend Tax - based on your Personal Dividend Income
• Income Tax (PAYE) & NI - based on your Personal Salary Income + Company Benefits

Other areas you will also need to be aware of, and which have their own reporting and submission requirements, are:

• Self-Assessment - for validating, and calculating your total Personal Tax
• Company Benefits & Expenses - used to help accurately calculate Income Tax & NI

Continue on to start understanding these areas!

Further Information

You can find further information about HMRC here:

» HMRC Website