UK Business Essentials: Structures, Taxation & Finance

Frequently Asked Questions

• Will this course give me the knowledge to fly a plane?

  No, unfortunately not. However, it will give you the knowledge to pilot your business.

• What are HMRC's payments on account for?

  You need to pay any tax owed to HMRC by January 31st, following the end of the tax year. If it is your first year of filing a tax return, you won’t have to make any payments on account.

  
  

  A payment on account is a prepayment towards tax for the tax year in which you make the payments on account.

  
  

  If your tax liability exceeds £1,000 in the previous tax year, you may need to make payments on account in January and July. You don't need to pay any payments on account if it is less.

• What are allowable expenses, and how can they reduce my tax?

  Allowable expenses are costs that your UK-based business can deduct from its taxable profits, reducing the amount of Corporation Tax you owe. These expenses typically include day-to-day operational costs such as rent, utilities, employee salaries, and business-related purchases.

  
  

  Properly documenting and claiming allowable expenses can significantly lower your taxable income, resulting in lower tax liability.

  
  

  Maintaining accurate records, ensuring expenses are genuinely business-related, and staying updated on tax rules and rates to maximize these deductions while staying compliant with tax regulations is essential.