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Business Builder

Tackling tax for your business

Make tax returns less taxing

Most businesses will need to pay some form of taxes, but these will depend on whether you’re a sole trader, partnership or a limited company, and the size and type of your business.

Let’s get digital

  • The government’s Making Tax Digital (MTD) scheme requires affected businesses and landlords to use compatible software to manage their tax with HMRC. 
  • All VAT-registered businesses are now required to keep digital records and file their returns online.
  • From April 2026 those businesses and landlords registered for income tax self-assessment with a qualifying income of more than £50,000 will be required to use MTD-compatible software to keep digital records and make submissions to HMRC. 
  • Individuals with a qualifying income of more than £30,000 will have to follow the rules from April 2027, and those with a qualifying income of more than £20,000 from April 2028. Partnerships are expected to be required to join at a date yet to be announced. 
  • There's more help on MTD for Income Tax on the gov.uk website

Be confident about going digital

  • Master Self Assessment - link FreeAgent’s accounting software to your mobile banking to see how much tax you owe, and when, with just one tap. FreeAgent is free if you retain a business current account with the bank (optional add-ons may be chargeable).
  • File your online Self Assessment tax return early – you’ll know exactly how much tax you’re liable for and you can budget accordingly.
  • Don’t miss the deadlines – if you’re filing your tax return for the first time, bear in mind it could take up to 10 working days after registration to get the codes you need to continue. Late payment of your taxes could lead to being charged interest and other penalties so it’s important to pay on time.
  • Get ready for MTD for Income Tax - FreeAgent makes it easy to stay compliant. We’ve worked with HMRC to create simple, reliable software that meets all their new rules. Find out more on the FreeAgent website.
  • Sole traders and partners are typically liable for income tax and direct national insurance contributions.
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Limited companies and limited liability partnerships

Limited companies and limited liability partnerships are required to file returns to Companies House as well as to HMRC. A limited company is considered to be a legal entity and its financial information is visible to the public.

Find out what you need to file

For Companies House

  • Annual accounts: this is a legal requirement and usually includes items like a profit and loss statement and a balance sheet. Watch this video to see how to submit your accounts.
  • Confirmation statement: this gives a yearly snapshot of the company’s management and ownership and can be submitted via the HMRC website.
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For HMRC

  • A company tax return showing income, expenses and tax allowances. Note that the deadline to pay your corporation tax will differ from the date of the tax return.


Corporation tax is calculated on any profits made by limited companies based in the UK and includes allowances and reliefs. Other more common taxes are VAT (value added tax), due quarterly, if your annual turnover is over £85,000 and Employer’s National Insurance contributions, paid in respect of your employees’ wages.

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Interest rates are subject to variation. Gross Rate - the interest rate you are paid without the deduction of UK income tax. Annual Equivalent rate (AER) - this is a notional rate of interest used for interest bearing accounts, which illustrates the rate if paid and compounded each year.

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Where next?

We (NatWest Group plc) can't accept responsibility for any decisions or actions you take based on this article. It’s for information only and not meant to offer specific advice. And although we think it’s reliable, we haven’t independently checked all the information in it.  You also shouldn’t copy the article anywhere without our consent. All views and forecasts in it are ours and can change.