According to a recent published article by The Tax Policy Associates the UK currently has 90 different taxes. Even working in finance every day came as a surprise!

 

Although before we start to wonder just how many of these apply to your day to day business or personal affairs another significant number to highlight is that around 75% of the revenue collected from taxes in the UK is from only a few taxes, namely Income Tax, National Insurance, VAT and Corporation Tax.

 

So it seems we do have an incredibly complex system built around a few impacting pieces of legislation and rules but the good news is that understanding the rules around the bearer instrument duty isn’t necessary as it no longer exists! (according to the article this dealt with taxes regarding a specific financial instrument that no longer exists)

 

So why does this matter for your business?

 

Every time a new tax is introduced the additional complexities cost business owners time. Every new tax rule comes with rules, exemptions, thresholds and deadlines that you need to learn and understand. Even for internal finance teams keeping up with these changes is onerous. 

 

What do SMEs in the UK do?

 

For many SMEs in the UK keeping up with legislation changes for their business is not always a key priority, especially when you have just spent time getting used to one way and then the rules adapt. 

 

The good news is that working with an external accountant who is continuously keeping up to date with any changes to the rules and regulations can help you keep on top of it all.

 

Whether you are a marketing agency looking to grow your team and want to understand the costs to the business from a National Insurance Contributions perspective or you are a SAAS/Tech company who wants to understand the implications of VAT outside the UK, Dash Accounting Services is here to help.

 

If you would like to have a conversation around tax, we would love to hear from you!