Taxation is an unavoidable reality of doing business in the UK, but it doesn’t have to be a burden. With clear guidance from HMRC and expert support from professionals like Mohi & Co, you can stay compliant, reduce risk, and make tax planning a tool for growth.

This comprehensive guide explores key HMRC tax advice for businesses of all sizes—from sole traders to limited companies. You’ll learn everything from corporation tax to VAT registration, self-assessment to Making Tax Digital (MTD)—all in one place.

Why Tax Advice Matters for Your Business

Navigating the UK’s tax system can feel overwhelming, especially with frequent regulatory changes. That’s where professional help comes in:

• Understand and meet your HMRC obligations
• Avoid penalties or interest charges
• Maximise deductions and allowable expenses
• Focus more time on running your business

Whether you’re a startup, an established SME, or a growing enterprise, accurate tax planning and filing can save you thousands over time.

1. Registering Your Business with HMRC

As soon as your business begins trading, you must inform HMRC. The process differs based on your business structure:

• Sole Trader: Register for Self-Assessment.
• Limited Company: Register for Corporation Tax within 3 months of trading.
• Partnership: Register the partnership and each individual partner.

👉 At Mohi & Co, we help clients set up the correct structure and handle all HMRC registrations on your behalf.

2. Know Which Taxes Apply to You

Depending on your business model, you may be liable for:

Tax Type	Who It Applies To	Description
Corporation Tax	Limited Companies	Tax on profits
VAT	Businesses with turnover over £90,000	Sales tax
Income Tax	Sole Traders / Directors	Personal income
National Insurance	All earners and employers	Contributions towards benefits
PAYE	Employers with staff	Deduct tax/NI from employees
Capital Gains Tax	Those selling business assets	On profits from asset sales

Understanding what applies to your business is critical to staying compliant.

3. Corporation Tax: Plan, File, Save

As a limited company, you must pay Corporation Tax on your profits. Current rates (as of 2025):

• 19% for profits up to £50,000
• 25% for profits over £250,000
• Marginal relief applies for profits between £50,000 and £250,000

Your responsibilities:

• Register for Corporation Tax within 3 months of trading
• File your Company Tax Return (CT600) within 12 months of the end of your accounting period
• Pay any tax owed within 9 months and 1 day of your year-end

📌 Mohi & Co provides Corporation Tax planning and submission services, helping you legally reduce tax liability through reliefs and expense claims.

4. VAT: When to Register and What to Know

If your annual turnover exceeds the £90,000 threshold, VAT registration becomes mandatory. However, voluntary registration can benefit startups wanting to reclaim input VAT or enhance credibility.

VAT Schemes:

• Standard VAT Accounting
• Flat Rate Scheme (ideal for smaller businesses)
• Cash Accounting Scheme (pay VAT only when paid)

Filing Requirements:

• Submit VAT Returns quarterly via MTD-compliant software
• Pay any VAT due to HMRC promptly
• Maintain 6 years of digital VAT records

💼 Mohi & Co helps businesses choose the right VAT scheme and stay compliant with all digital filing requirements.

5. Self Assessment: A Must for Sole Traders & Directors

If you’re self-employed or a company director receiving dividends, you must complete a Self-Assessment tax return every year.

Key Dates:

• Register by 5 October (second year of trading)
• Submit Online Return by 31 January
• Payment Deadlines: 31 January and 31 July (if making payments on account)

Self Assessment includes your income, allowable expenses, and other earnings (e.g., rental, dividends).

📋 At Mohi & Co, we ensure your Self Assessment is accurate, on time, and optimised for tax savings.

6. Claiming Allowable Expenses: Don’t Leave Money on the Table

HMRC allows businesses to deduct expenses that are “wholly and exclusively” for business purposes.

Commonly Claimed Business Expenses:

• Rent, utilities, and insurance
• Office supplies and IT equipment
• Travel and mileage (business use only)
• Marketing and advertising costs
• Staff salaries, pensions, and training
• Accountancy and legal fees

📦 Mohi & Co offers detailed bookkeeping services to track every claimable expense and keep your books HMRC-ready.

7. PAYE and Employer Responsibilities

Hiring staff? Then you must operate Pay As You Earn (PAYE) to deduct Income Tax and National Insurance.

Employer Duties:

• Register as an employer with HMRC
• Calculate wages and deductions accurately
• Submit payroll info in Real Time Information (RTI)
• Issue payslips and annual forms (P60, P11D)

🧾 We offer fully managed payroll services, freeing you to focus on growing your team, not on tax admin.

8. Making Tax Digital (MTD): Digital Filing Is the Future

Making Tax Digital is HMRC’s initiative to digitise UK tax. You must:

• Keep digital records
• Submit tax returns through MTD-compatible software

Who Must Comply:

• VAT-registered businesses (already in effect)
• Self-employed / landlords earning over £50,000 (from April 2026)
• Eventually, all businesses and individuals will be required to use MTD

🔧 Mohi & Co can migrate your business to digital tools and keep you compliant with HMRC’s evolving tech standards.

9. Penalties and Mistakes to Avoid

Tax mistakes can be costly. Common errors include:

• Missing deadlines
• Failing to register for VAT
• Poor record-keeping
• Overclaiming personal expenses
• Using incorrect accounting methods

HMRC penalties range from fixed fines to interest charges and investigations.

💡 Prevention is cheaper than correction. Our proactive compliance checks help you avoid red flags and errors.

10. Why Choose Mohi & Co for Tax Support?

At Mohi & Co, we go beyond compliance. We act as your strategic financial partner.

Our Services Include:

• Tax return preparation & submission
• Corporation Tax planning
• VAT & MTD compliance
• Self Assessment for directors & freelancers
• Bookkeeping & expense management
• Payroll services
• HMRC inquiry support

✅ Registered accountants
✅ Industry-specific advice
✅ Affordable, fixed-fee packages

Let our team of qualified professionals handle the tax complexities, so you can focus on growth.

Final Thoughts: Stay Compliant. Save Smart. Grow Confidently.

Tax doesn’t have to be stressful. With the right guidance from HMRC and the expert support of Mohi & Co, your business can stay ahead of obligations while legally reducing liabilities.

Whether you’re a first-time sole trader or managing a growing limited company, our mission is simple:
Help you pay only what you owe—never more.

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Frequently Asked Questions (FAQs)

Q1: When should I register my business for tax with HMRC?
A: As soon as you begin trading. Limited companies must register within 3 months.

Q2: What if I miss a tax deadline?
A: You could face penalties. Contact HMRC immediately or speak with an advisor at Mohi & Co.

Q3: Do I need software for Making Tax Digital?
A: Yes, MTD requires compatible accounting software. We’ll help you choose and set it up.

Q4: Can Mohi & Co handle my Self Assessment?
A: Absolutely. We offer end-to-end self-assessment services, including advice and filing.

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Need Help With Business Tax?

Get expert HMRC tax advice and support from the team at Mohi & Co. Whether it’s your first return or your hundredth, we’ll make sure your business is tax-smart and stress-free.

📞 Contact today for a free consultation.
🌐 www.mohiandco.co.uk
📧 info@mohiandco.co.uk
📍 Serving clients across London and the UK