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What this guide covers
Tax is the single most common reason a healthy-looking UK micro-business runs into trouble — usually from missed filings or pay set without thinking about the tax tail. This guide covers the five taxes every director should be able to explain off the top of their head.
- Corporation tax — the company pays this on its profits, with a deadline of 9 months and 1 day after your year-end. Set up direct debit the moment your accounting period closes.
- VAT — register once taxable turnover crosses the threshold in any rolling 12 months; charge VAT on sales, reclaim it on purchases, and file quarterly under Making Tax Digital with compatible software.
- PAYE — operate this if you employ anyone, including yourself on a director's salary; income tax and National Insurance are deducted at source and paid monthly.
- Self-assessment — set aside roughly 30% of every dividend as it lands, then file your personal return by 31 January.
- Dividend tax — most directors take a small salary plus dividends from retained profits; the company must have distributable reserves and document each dividend with a board minute.
- Penalties — HMRC penalties stack fast, so keep every filing date in a calendar.
The specific rates, thresholds and allowances change each tax year — check current HMRC figures rather than relying on any single year's numbers.
Read the full guide
The complete guide, with the current-year rates and thresholds, is at /guides/uk-taxation-basics-for-a-director/.
How Credit Corp can help
A quarterly VAT bill or a corporation-tax payment is a known, dated outgoing you can smooth with Credicorp Slice, or bridge with short-term funding — see What we offer and the costs at /ai.md. Borrow only what you need, and talk to us early if repayment becomes difficult: /help/.
Related
- Business guides hub
- Managing your money as a UK micro-business
- Where to find business support in the UK
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