UK New buisness queries.

[howard1]

Hello,
My wife and I have the opportunity to start a small export buisness, we can't seem to get the correct Information about corporation tax, what it is?, who should pay it ? etc, any thoughts would be greatly appreciated.
Any advice as to how we should register our buisness also, partnership? etc. Would be really helpful.


Many Thanks.

 

[Becky]

Welcome to the forums!

How you pay tax will depend on the structure of your business. If you set up a company, your company will pay corporation tax on taxable profits, and you will pay income tax on any salary/dividends you receive from the company. If you set up a partnership, then you and your wife will pay income tax on the profits and there will be no corporation tax obligations.

There is some handy advice on HMRC's website:

HM Revenue & Customs: Starting a business

The reason that companies pay corporation tax is that they are separate legal entities, whereas partnerships are not (and are therefore transparent for tax purposes).