Over a year, a business owner has to make certain returns to the Inland Revenue, and to customs and Excise if resistered for VAT.

Corporation Tax is a tax on the profits of a limited company or limited liability partnership. This is calculated by your accountant and declared to the Inland Revenue on a Company Tax Return.

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If you are self employed you are probably liable for class 2 National Insurance Contributions paid weekly. You will also need to complete a self- assessment tax return on an annual basis. Income tax is then charged on your profits, as are class 4 NIC's if your profits exceed a certain level.

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If your business employs people, then you must have a payroll system in place in order to pay your employees a wage or salary and deduct the correct amount of tax and National Insurance (NICs) from their pay.

In addition to this a payroll system needs to be able to handle sick pay, maternity pay, pension contributions, family tax credit, etc.

Businesses can choose to either manage payroll internally or outsource to either a specialist payroll service company or an accountant’s service.

Businesses needing to set up a Payroll system will need to know about PAYE (pay as you earn) and NICs (National Insurance Contributions).

If the value of your taxable supplies (turnover) in the past 12 months exceeds the current VAT registration threshold of £58,000 you must register your business for VAT. The standard rate of VAT currently stands at 17.5%, but may be at a reduced or zero rate.

For more information see Customs and Excise website:

Business Link for Greater Merseyside have a list of accredited consultants who will be able to assist you with payroll business solutions. For more information please visit:

For further information on PAYE and NIC please visit Inland Revenue website: