When will I pay tax?
If you set up a company and receive a regular salary then tax and national insurance are deducted each month.
The company will pay tax based on its profits, subject to adjustments due to tax legislation and is due for payment nine months and one day after the end of the accounting year.
For example, a company with an accounting period ending 31 December 2007 pays tax on 1 October 2008. If you are sole trader or partnership, you pay income tax under self-assessment regime.
Tax due for the 2007/08 tax year is payable as follows:
First payment on account 31 January 2008
Second payment on account 31 July 2008
Balancing payment 31 January 2009 |
