SMALL BUSINESS INCOME TAX
Income tax is paid on income you receive personally, such as salary and dividends. If you’re a limited company director, income tax is paid through your business’s PAYE scheme. For sole traders, income tax will be paid based on the profit made from the business which is included on your self-assessment tax return.
20% – basic rate
40% – higher rate
45% – additional rate
Income tax is only payable by individuals, so business owners won’t have to pay any income tax for the business itself.
However, if their wage is above the personal allowance (£12,570 for the 2021-22 tax year), they’ll be liable to pay income tax.
The amount you pay will depend on your tax band. Keep in mind that other earnings – like dividends, savings interest or capital gains – may also count towards your income, and push you into a higher tax band.
How to pay
If you’re a sole trader, you’ll pay income tax on the profit you make from your business. You’ll need to submit a self-assessment tax return to HMRC to calculate how much you owe.
If you’re paid by the company, income tax will be taken through the company’s PAYE scheme. It’s at this point you’ll also pay any personal National Insurance contributions you owe.
Gower Accountants Can Help With Small Business Income Tax
As experienced tax accountants in Leicester, we can help you navigate your tax responsibilities by providing useful advice as well as filing assistance. If you so wish, we can handle the whole process for you, giving you one less thing to worry about.
As well as giving you more time to focus on your core business, this will ensure that you remain compliant and that you won’t be spending any more tax than necessary.
Gower Accountancy Services
Flexible bookkeeping to keep you organised, as well as a specialist breakdown and analysis of your expenditures.
Always accurate and on time, keeping HMRC happy.
Error free accounts for your Limited Company, produced by expert accountants.
If change is on the horizon, our expert tax advisors will be on hand to help you choose the right path.
From registration to submission, we can save you time by managing all of your VAT returns.
A fully managed payroll service, and advice on choosing the best pension scheme for your business.
Help with registration, administrative assistance, and advanced tax planning to optimise your profits.
Advice and help with CGT legislation - a complex area, made simple by our highly knowledgeable accountants.
Advice and filing services for small businesses, ensuring your business meets deadlines and saves money on tax.
Help with cash flow forecasts and creating a credible business plan, preparing your business for future success.
Preparation of accounts, assistance with tax returns, and expert advice for your sole trader or partnership.
Frequently Asked Questions
Learn How it Works!
We understand that accountancy and tax can be complicated, and you are likely to have many questions. At any time, you can book a no-obligation consultation in which we can provide answers specific to your circumstances. For more general enquiries, however, feel free to browse our FAQs!
What does “chartered” mean?
A chartered accountant is an accountant who has studied accounting to a high level and completed three to five years' work experience, earning them a professional accreditation. Once qualified, a chartered accountant can join the ACCA (Association of Chartered Certified Accountants) or another professional body.
While a regular accountant is generally capable of providing straightforward accountancy services, a chartered accountant can become a far more valuable asset to your business. Due to their in-depth expertise, chartered accountants can advise on specific business and financial matters, including corporate finance, cash-flow forecasting, forensic accounting, and advanced tax planning.
As chartered accountants in Leicester, Gower are proud to uphold the professional and ethical codes of the ACCA - and we are dedicated to using our chartered status to help Owner-Managed Businesses in as many ways as possible.
I already have an accountant, do I need to change?
Does your existing accountant offer you a pro-active, flexible service at an excellent rate? Are they easily contactable? Do they save you money, and help you to make profitable business decisions?
If so, then it sounds like you’ve got a keeper! However, if you answered no to any of the questions, or fancy exploring your options a bit, then please get in touch for a free, no-obligation consultation.
Not all accountants were created equal; some simply provide a better service, save you more money, and provide more advanced levels of business advice. If you’d like to see just how much an expert chartered accountant can benefit your Owner-Managed Business in Leicester, Gower is ready to show you.
Are you the right accountants for my business?
We understand that choosing an accountant for your business is not a small decision, and one that should not be taken lightly. You need an accountant that you can trust, who will get to know your business inside-out and will always operate in your best interests.
We’re not saying that we’re perfect for everyone - but we do have decades of experience working with Owner-Managed Businesses of all sizes, across a vast range of sectors. Once we partner up with someone, we take the time to understand their business, their needs, and their goals - and then we give it our all. This has granted us a reputation of which we are very proud.
The best way for you to see if we’re a good fit is to talk over the phone, or meet for a coffee - a free meeting, with no obligation. Let’s have a chat about how we can help your business.
I need help urgently! What can you do?
If you are experiencing an accounting emergency, we would kindly ask you not to panic. We can help!
Our Accounts Emergency corner has gotten more than a few Owner-Managed Businesses out of a tight jam. If your accounts are in a bit of a mess, or you’ve received a nasty letter from HMRC, or anything else, we’ll fast-track you and offer a quick solution.
What are the benefits of hiring an accountant?
There are many benefits to hiring a good accountant. In addition to keeping your books, managing your payroll, and keeping your accounts up to date, your accountant can actually help you to save money and boost the profitability of your business.
The main benefits of hiring a chartered accountant in Leicester include:
- Keeping you compliant - As an Owner-Managed Business, you are legally required to provide records of your accounts informatively, accurately, and consistently. There are a series of tax deadlines that must be met throughout the financial year, and if one of these is missed, it will result in a penalty.
As your trusted accountants, we can take care of everything, and thus guarantee that you remain in HMRC’s good books.
- Reducing your taxes - Knowledgeable accountants can find legitimate ways to keep your tax payouts as low as possible. Whether through government schemes, flat rate schemes, or expense claims, there are many ways of reducing the tax that most businesses don’t know about.
As tax experts, we can ensure that you never pay a penny more in tax than necessary.
- Making profitable business decisions - In order to make good business decisions, substantial knowledge of finance is often required. Without the knowledge of your business’s financial history, current state, and future forecast, your business could easily take a wrong turn.
By analysing your business’s finances and calculating logical forecasts, we can help to guide your business down the most profitable path.
Is it easy to change accountants?
If your current accountant isn’t providing the level of service you want, and you would like to move over to us, then the process couldn’t be simpler.
All it takes is just one letter from you, and then we take care of the rest. In most cases, your existing accountant cannot charge you for providing the standard handover information.
You seem to offer a lot, are your fees expensive?
We do indeed offer a wide range of accountancy services in Leicester - but our packages are tailored to match the specific needs of you and your business. We will never impose a service that you do not truly need.
Are we the cheapest accountants in Leicester? Probably not. But as far as value for money goes, we are confident that we cannot be beaten.
As with most things, the cheapest accountant is often the most expensive in the long run. Every penny that you spend with us will be applied with purpose, putting it to the best possible use - not just saving you money, but also increasing the profitability of your business.
As experienced, dedicated, highly-knowledgeable chartered accountants in Leicester, we provide a service that almost instantly repays itself in the value-added to your business.
Get In Touch!
Based on the outskirts of the city centre, Gower Accountancy is only a 5 minute walk from Leicester railway station which is easily accessible by public transport and we also provide ample parking for those who wish to visit by car.
Contact Gower Accountancy today for your Free 30 Minute Consultation to see how we can help you and your business:
0116 220 6019
0800 612 7122
250 Humberstone Road,
Leicester, LE5 0EG