Money and property when you divorce or separate

Getting a financial agreement

When you divorce or end a civil partnership you and your ex-partner need to agree how to separate your finances.

This includes deciding how you’re going to divide:

pensions

property

savings

investments

You might get things like:

a share of your your partner’s pension - including State Pension or private pension plans

regular maintenance payments to help with children or living expenses

You can usually avoid going to court hearings if you agree how to split your money and property.

The rules are different if you were not married or in a civil partnership. You’ll still have to agree on child maintenance payments for any children.

What you can do is different in Scotland and Northern Ireland.

Making an agreement legally binding

If you and your ex-partner agree on how to divide money and property,  you need to apply for a consent order to make it legally binding.

Get help agreeing

You can use a mediator or get other help to resolve issues out of court.

Get the court to decide

If you cannot agree on everything, you can ask a court to make a financial order.

If you agree

It’s usually more straightforward and less expensive if you agree how to divide your money and property. Get help agreeing.

Making your agreement legally binding

To make your agreement legally binding you need to draft a consent order and ask a court to approve it.

If your agreement is not legally binding, a court cannot enforce it if there are any issues later.

A consent order is a legal document that confirms your agreement. It explains how you’re going to divide up assets like:

pensions

property

savings

investments

It can also include arrangements for maintenance payments, including child maintenance.

You can get legal advice or ask a solicitor to draft a consent order for you.

When to apply for a consent order

You can ask the court to approve your consent order if you’ve started the paperwork to divorce or end your civil partnership.

It is usually more straightforward to divide money and property before you apply for the final legal document to end the relationship.

The final legal document is the:

decree absolute if you’re divorcing

final order if you’re ending a civil partnership

You can divide money and property after your divorce is finalised or civil partnership has ended. This may change what you’re entitled to get and you may have to pay tax on it.

How to ask the court for approval

You and your ex-partner have to:

draft a consent order

sign the draft consent order - you also need 2 photocopies of the signed original

fill in a statement of information form

One of you also needs to fill in a notice of an application for a financial order.

If you’re ending a civil partnership or legally separating, send the signed forms and copies with the £50 fee to the court dealing with your paperwork. Keep your own copies.

If you’re divorcing, send the signed forms and copies with the £50 fee to:

You may be able to get help with court fees if you’re on benefits or a low income.

There’s usually no court hearing. A judge will approve your consent order to make it legally binding if they think it’s fair.

If they do not think it’s fair, they can ask you to change it.

How much it costs

The court fee is £50.

Solicitor fees vary depending on their experience and location. They usually charge per hour.

Get help agreeing

A mediator can help you and your ex-partner agree on how to split money and property, without taking sides.

Mediation is not relationship counselling. It can help you agree on how you’ll divide your assets, including:

pensions

property

savings

investments

Mediation can be quicker and cheaper than asking a court to decide for you.

You need to attend a mediation information assessment meeting (MIAM) before you start mediation.

Find a local mediator.

The mediator can decide mediation is not right for you (for example, if there’s been domestic abuse and you need to go to court instead).

How much it costs

A MIAM is usually about £30. If you need more mediation sessions they cost more and fees vary depending on where you live.

Check if you can get legal aid for mediation.

Making your agreement legally binding

At the end of mediation you’ll get a document showing what you agreed. This agreement is not legally binding.

If you want a legally binding agreement you need to draft a consent order and get a court to approve it. The consent order can be based on what you agreed in mediation.

If you need more help agreeing

You can:

ask a legal adviser about other ways to resolve issues out of court (such as family arbitration or collaborative law)

get information and advice from Citizens Advice

read guidance to help you sort out finances when you get divorced

work out your finances with a divorce and separation calculator

If you do not agree on everything

You can ask a court to decide on anything you have not agreed on.

Get the court to decide

If you and your ex-partner cannot agree how to divide your finances you can ask a court to make a financial order (also known as the ‘contested’ route or an ‘ancillary relief order’).

This means the court will decide how assets will be split. Getting the court to decide usually takes longer and is more expensive than if you and your ex-partner agree.

You must attend a meeting about mediation before you can apply to the court to decide - except in certain cases (if there’s been domestic abuse, for example).

A financial order will describe how you’re going to divide up assets like:

pensions

property

savings

investments

When to apply for a financial order

You can ask a court to make a financial order if you’ve started the paperwork to divorce or end your civil partnership.

The final legal document is the:

decree absolute if you’re divorcing

final order if you’re ending a civil partnership

You can divide money and property after your divorce is finalised or civil partnership has ended but it may change what you’re entitled to get and you may have to pay tax on it.

How to apply

You need to apply for a financial order.

Send 2 copies of the form to the court dealing with paperwork in your area to divorce or end your civil partnership. Keep a copy for yourself.

You can hire a solicitor to help you apply for a financial order from the court.

After you apply

There are three stages:

the first appointment - a short hearing with the judge to discuss your application

financial dispute resolution (FDR) appointment -  to help you agree without needing a final hearing (you might need more than one appointment)

final hearing -  if you’re not able to agree, this is when a judge will decide how you must separate your finances

The court will send you and your ex-partner details when the first appointment will be. This is usually 12 to 14 weeks after you apply.

Before the first appointment

You and your ex-partner need to fill in a financial statement for a financial order (Form E) to show a breakdown of your property and debts. This includes giving an estimate of your future living costs.

You’ll also need to collect documents about your finances, for example:

rental or mortgage agreements

pension documents

loan agreements

proof of your salary income, for example P60 or recent pay slips

details of personal belongings worth more than £500, for example a car or house contents

How long it takes

It depends on:

how many financial dispute resolution appointments you need

if you need a final hearing

There can be several months between the appointments.

How the court decides

If you cannot agree, a judge will decide how assets will be split. They’ll base their decision on how long you’ve been married or in a civil partnership, as well as your:

age

ability to earn

property and money

living expenses

standard of living

financial needs and responsibilities

role in looking after the family, for example if you were the main earner or caring for the family or home

disability or health condition, if you have any

The judge will decide on the fairest way to divide the assets if there’s enough to meet everyone’s needs. They will make arrangements for any children first - especially their housing arrangements and child maintenance. The reason for the divorce or dissolution is not taken into account.

The judge will usually try to arrange a ‘clean break’, so everything is shared out, and you no longer have any financial ties to one another.

How much it costs

The court fee is £255.

Solicitor fees vary depending on their experience and where you live. They usually charge by the hour. How much you pay in total depends on how many financial dispute resolution appointments you need and if there will be a final hearing.

You can get legal aid to help with court costs in certain situations, for example if you’re separating from an abusive partner.

Further help and advice

You can:

get information and advice from Citizens Advice

read guidance to help you sort out finances when you get divorced

find out more about how to apply for a financial order

Maintenance payments

The court sometimes tells the person with the higher income to make regular maintenance payments to help with the other person’s living costs.

This is called a ‘maintenance order’.

A maintenance payment can be set for:

a limited period of time

until one of you dies, marries or enters into a new civil partnership

The payment can also be changed if one of you loses your job or gets much better paid work.

Child maintenance

The court can also decide on child maintenance, but this is often arranged by the Child Maintenance Service.

Read more about making arrangements to look after children when you divorce or separate.

Tax when transferring assets

You do not usually have to pay Capital Gains Tax if you give, or otherwise ‘dispose of’, assets to your husband, wife or civil partner before you finalise the divorce or civil partnership.

Assets include shares, certain personal possessions and property. You usually do not have to pay tax if you transfer or sell your main home.

If you transfer an asset when you’re separated

If you lived together at any point in the tax year that you transferred the asset, the normal rules for spouses and civil partners apply.

Otherwise you may have to pay Capital Gains Tax. You’ll need to get a valuation of the asset on the date of transfer, and use it to work out the gain or loss.

The tax year is from 6 April to 5 April the following year.

If you transfer an asset after you’ve divorced or dissolved your civil partnership

You may have to pay Capital Gains Tax on assets you transfer after your relationship has legally ended.

The rules for working out your gain or loss are complex. Contact HM Revenue and Customs (HMRC) or get professional tax help, such as an accountant or tax adviser. You’ll need to tell them the date of:

the decree absolute or dissolution

any court order, if assets were transferred this way

any other contract showing the transfer of assets


Get a divorce

Check you can get a divorce

You can get divorced in England or Wales if all of the following are true:

you’ve been married for over a year

your relationship has permanently broken down

your marriage is legally recognised in the UK (including same-sex marriage)

the UK is your permanent home, or the permanent home of your husband or wife

If you do not want a divorce, you can get a legal separation so you can live apart without ending the marriage. You might also be able to annul the marriage. You can apply for separation or annulment during your first year of marriage.

This guide is also available in Welsh (Cymraeg).

Getting a divorce is different in Scotland and Northern Ireland.

Grounds for divorce

When you apply for a divorce you’ll need to prove that your marriage has broken down and cannot be saved. You’ll need to give one or more of the following 5 reasons (also known as ‘facts’).

Adultery

Your husband or wife had sexual intercourse with someone else of the opposite sex (committed adultery).

You cannot give adultery as a reason if you lived together as a couple for more than 6 months after you found out about it.

Unreasonable behaviour

Your husband or wife has behaved in such a way that you cannot reasonably be expected to live with them.

This could include:

physical violence

verbal abuse, such as insults or threats

drunkenness or drug-taking

refusing to pay towards shared living expenses

Desertion

Your husband or wife has left you for at least 2 years before you apply for divorce.

You can still claim desertion if you have lived together for up to a total of 6 months in this period, but that will not count towards the 2 years.

You’ve been separated for at least 2 years

You can apply for a divorce if you’ve been separated for at least 2 years before applying for divorce and you both agree to it.

Your husband or wife must agree in writing.

It may be possible for you to show that you’ve been separated while living in the same home as your wife or husband as long as you’re not living together as a couple (for example you sleep and eat apart).

You’ve been separated for at least 5 years

You can apply for a divorce if you’ve been separated for at least 5 years before applying, even if your husband or wife disagrees.

Before you apply

Before you send in your application, you and your husband or wife can choose to work out:

arrangements for looking after any children

child maintenance payments for any children

You can also divide your money and property. There’s a deadline if you want to make this legally binding.

You can usually avoid going to court hearings if you agree about children, money and property and the reasons for ending your marriage.

Get help agreeing on issues

You can use a mediator. Check if you can get legal aid to help pay for mediation.

You can also get advice on making agreements from:

organisations near you

Citizens Advice

If you’re married to more than one person

Contact your regional divorce centre if you’re married to more than one person (polygamy).

How to apply

To apply for a divorce you’ll need:

your husband or wife’s full name and address

your original marriage certificate or a certified copy (and a certified translation if it’s not in English)

proof of your name change if you’ve changed it since you got married - for example your marriage certificate or a deed poll

You must try to find your husband or wife’s current address if you do not know it. The court will need it to send them a copy of the divorce petition.

If you name the person your husband or wife committed adultery with, they’ll get copies of the paperwork.

Fee

You must pay a £550 fee to apply for a divorce. The way you pay depends on how you apply. Your fee will not be refunded after you are sent the notice that your application has been issued.

You may be able to get help with fees if you get benefits or are on a low income.

Apply online

You can apply for a divorce online.

You’ll need a debit or credit card to apply online.

Apply by post or in Welsh

Fill in a divorce application form D8 (‘divorce petition’) to start a divorce.

You can get help filling in the form at a Citizens Advice office.

Send 3 copies of the form to your nearest divorce centre. They’ll send one copy to your husband or wife.

You need to send 4 copies if you named someone your husband or wife committed adultery with.

Keep your own copy of the forms.

How to pay

You can either pay by:

debit or credit card - the divorce centre will call you to take payment

cheque - made payable to ‘HM Courts and Tribunals Service’

What happens after you apply

Your application will be checked. If it’s correct, you’ll be sent:

a notice that your application has been issued (sent out)

a copy of your application stamped by the divorce centre

a case number

This may take up to 10 days if you applied online or 1 month if you applied by post.

The court will send your husband or wife the divorce application and an ‘acknowledgement of service’ form. Your husband or wife will need to respond to your divorce application.

If you named someone your husband or wife committed adultery with, they’ll also be sent a copy of the application and be asked to respond.

Your husband or wife responds

The acknowledgement of service form asks your husband or wife if they:

agree with the divorce

intend to try to prevent the divorce (defend it)

object to paying the costs (if you’ve claimed them)

Your husband or wife must respond within 8 days.

If they agree with the divorce

You can continue with the divorce by applying for a decree nisi.

If they defend the divorce

Your husband or wife will have to complete an ‘answer to divorce’ form to say why they disagree with the divorce. They must do this within 28 days of getting the divorce application.

If they do not submit an ‘answer to divorce’ form, you can continue the divorce by applying for a decree nisi.

If they do submit an answer to divorce in time, you may have to go to court to discuss the case.

Apply for decree nisi

You can apply for a decree nisi if your husband or wife does not defend your divorce petition.

A decree nisi is a document that says that the court does not see any reason why you cannot divorce.

If your husband or wife does not agree to the divorce, you can still apply for a decree nisi. However, you’ll have to go to a court hearing to discuss the case, where a judge will decide whether to grant you a decree nisi.

If you already have a hearing date, the court will contact you and tell you how the hearing will take place.

How to apply

To get a decree nisi, read the guidance and then fill in the application for a decree nisi.

You must also fill in a statement confirming that what you said in your divorce petition is true.

There are 5 statement forms - use the one that covers the reason you’ve given for your divorce:

adultery statement

unreasonable behaviour statement

desertion statement

2 years’ separation statement

5 years’ separation statement

Attach a copy of your husband’s or wife’s response to the divorce petition.

Getting a decree nisi

If the judge agrees, the court will send you and your husband or wife a certificate. This may take several weeks.

The certificate will tell you the time and date you’ll be granted a decree nisi.

You’ll still be married after the decree nisi has been granted. You’ll have to wait 43 days (6 weeks and 1 day) before you can apply for a ‘decree absolute’ to actually end the marriage.

Your application is rejected

You may be sent a ‘notice of refusal of judge’s certificate’ form, saying why you cannot divorce.

The form will tell you what to do next. The judge may want more information in writing, or you may have to go to a court hearing.

You can get legal advice if there’s going to be a court hearing.

Apply for a decree absolute

The decree absolute is the legal document that ends your marriage.

You need to wait at least 43 days (6 weeks and 1 day) after the date of the decree nisi before you can apply for a decree absolute.

Apply within 12 months of getting the decree nisi - otherwise you will have to explain the delay to the court.

How to apply

To apply for a decree absolute, fill in the notice of application for decree nisi to be made absolute form.

If you want a legally binding arrangement for dividing money and property you must apply to the court for this before you apply for a decree absolute.

Getting the decree absolute

The court will check that:

time limits have been met

there are no other reasons not to grant the divorce

The court will then send you both a decree absolute.

You’ll get your decree absolute within:

24 hours (Monday to Friday) if you applied online

10 days if you applied by post

If a solicitor is acting for you, the decree absolute will be sent to them. You’ll need to ask them for a copy.

Once you get the decree absolute, you are divorced, no longer married and free to marry again if you wish.

Keep the decree absolute safe - you will need to show it if you remarry or to prove your marital status.

If you lose your decree absolute, you can apply to the court for a copy.

If you do not apply for the decree absolute

Your husband or wife can apply for the decree absolute if you do not. They’ll have to wait an extra 3 months to do this, on top of the standard 43 days.

If your husband or wife lacks mental capacity

You can apply for a divorce if your husband or wife ‘lacks mental capacity’ and cannot agree to a divorce or take part in the divorce case.

Your husband or wife will need someone to make decisions for them during the divorce. The person who acts on their behalf is called a ‘litigation friend’. It can be a family member, close friend or someone else who can represent them.

Your husband or wife does not have a litigation friend

If there’s no one suitable and willing to be their litigation friend, you can apply to the court to appoint a litigation friend.

The Official Solicitor may agree to act as your husband or wife’s litigation friend when there’s no one else to do this (‘litigation friend of last resort’).

How to apply

Check there’s nobody else suitable or willing to act as your husband or wife’s litigation friend.

Check that there’s money available for any costs the Official Solicitor has to pay. Your husband or wife may be able to get legal aid.

Give the details of your husband or wife’s doctor or other medical professional to the court so it can ask for a certificate of capacity.

If the Official Solicitor agrees to act as litigation friend for your husband or wife, you’ll be able to file for divorce.

Contact the Official Solicitor’s staff

Email or call the private family law team if you have an enquiry about divorcing someone who lacks mental capacity. They cannot answer general questions about divorce.


End a civil partnership

Check you can end your civil partnership

You can apply to end (‘dissolve’) your civil partnership if you’ve been in the partnership for over a year.

If you do not want to end the civil partnership, you can get a legal separation so you can live apart. You can apply for separation during the first year of your civil partnership.

Ending your civil partnership is different in Scotland and Northern Ireland.

How to end your civil partnership

You must send paperwork to a court to ask for permission to end your civil partnership.

Separate from the paperwork, you and your ex-partner may need to work out:

arrangements for looking after any children

child maintenance payments for any children

You also need to divide your money and property. There’s a deadline if you want to make this legally binding.

You can usually avoid going to court hearings if you agree about children, money and property and the reasons for ending your civil partnership.

Get help agreeing on issues

You can use a mediator. Check if you can get legal aid to help pay for mediation.

You can also get advice on making agreements from:

Citizens Advice

Advicenow

Grounds for ending a civil partnership

When you apply to end your civil partnership (‘dissolution’), you’ll need to prove your relationship has broken down and cannot be saved.

You’ll need to give one or more of the following 4 reasons (also known as ‘facts’).

Unreasonable behaviour

Your civil partner has behaved in a way that means you cannot reasonably be expected to live with them.

This could include:

physical or mental cruelty

verbal or physical abuse

being irresponsible with money

being sexually unfaithful

Desertion

Your civil partner has intentionally left you for at least 2 years.

You can still claim desertion if you have lived together for up to a total of 6 months in this period. This will not count towards the 2 years.

You’ve been separated for at least 2 years

You can apply to end your civil partnership if you’ve been separated for at least 2 years before applying and you both agree to end the civil partnership.

Your civil partner must agree in writing to end the civil partnership.

It may be possible for you to show that you’ve been separated while living in the same home as your civil partner as long as you’re not living together as a couple (for example you sleep and eat apart).

You’ve been separated for at least 5 years

You can apply to end your civil partnership if you’ve been separated for at least 5 years, even if your civil partner disagrees.

How to apply

To end a civil partnership, you first need to fill in a dissolution application.

You must include your:

full name and address

civil partner’s full name and address

civil partnership certificate - send the original certificate or get a copy from a register office

Include the names and dates of birth of any children (no matter how old they are).

You must try to find your civil partner’s current address if you do not know it. The court will need it to send them a copy of the dissolution application.

Pay the court fee

You will have to pay a £550 court fee to file the dissolution application.

You may be able to get help with court fees if you’re on benefits or a low income.

By phone with a debit or credit card

The court calls you to take your payment. Include a letter with your petition to request the call and give them your phone number.

By post with a cheque

Make out the cheque to ‘HM Courts and Tribunals Service’ and send it with your application.

Send the forms

Once you have filled in the forms:

send 3 copies to the court

keep copies for yourself

include your cheque, or your letter asking to pay by phone

Where to send the forms

Send the forms to your nearest court dealing with civil partnership dissolution.

Apply for a conditional order

You can get a conditional order if your partner agrees to end the civil partnership.

A conditional order is a document that says the court does not see any reason why you cannot end the civil partnership. It is the first of 2 stages to getting the civil partnership dissolved - the second stage is getting a final order.

If your partner does not agree to end the civil partnership, you can still apply for a conditional order. You’ll have to go to a hearing at the court to discuss the case, where a judge will decide whether to grant you the conditional order.

You must wait at least 7 days after your civil partner has received their copy of the dissolution application.

Fill in the application form

To apply for a conditional order, fill in the application for a conditional order.

If your partner is defending the case, fill in section B of the form, saying you want a ‘case management hearing’ before the judge.

You also need to fill in a statement confirming that what you said in your dissolution application is true.

There are 4 statement forms - use the one that covers the reason you’ve given for ending the civil partnership:

unreasonable behaviour statement

desertion statement

2 years’ separation statement

5 years’ separation statement

The forms will need to show your civil partner:

has received the dissolution application

agrees to the dissolution if you’re using the fact that you’ve been living apart for 2 years as your reason

agrees with any arrangement proposed for children

Attach your civil partner’s response to the dissolution application, and send it to the court. Keep your own copy.

You’ll still be civil partners at this stage, the ‘final order’ actually ends your civil partnership.

Apply for a final order

The final order is the legal document that ends your civil partnership.

You have to wait 6 weeks after the date of the conditional order to apply for a final order.

If your civil partner applied for a conditional order, you have to wait 3 months and 6 weeks after the date of the conditional order.

Apply within 12 months of getting the conditional order - otherwise you will have to explain the delay to the court.

If you want a legally binding arrangement for dividing money and property you must apply to the court for this before you apply for a final order.

To apply for a final order, fill in the application for a conditional order to be made final.

Return the form to the court. This will usually be the same court that dealt with your conditional order.

Getting the final order

The court will check that there are no reasons why the civil partnership cannot be ended. You must provide all details the court asks for within the time limits.

If the court is happy with all the information, it will send you and your civil partner a final order.

Once you get your final order, your civil partnership has ended and you can marry or enter into another civil partnership.

You must keep your final order safe - you will need to show it if you enter into another civil partnership or to prove your status.

If your partner lacks mental capacity

You can apply to end your civil partnership if your partner ‘lacks mental capacity’ and cannot agree to end the civil partnership or take part in the process.

Your partner will need someone to make decisions for them during the process. The person who acts on their behalf is called a ‘litigation friend’. It can be a family member, close friend or someone else who can represent them.

Your partner does not have a litigation friend

If there’s no one suitable and willing to be their litigation friend, you can apply to the court to appoint a litigation friend.

The Official Solicitor may agree to act as your partner’s litigation friend when there’s no one else to do this (‘litigation friend of last resort’).

How to apply

Check there’s nobody else suitable or willing to act as your civil partner’s litigation friend.

Check that there’s money available for any costs the Official Solicitor has to pay. Your civil partner may be able to get legal aid.

Give the details of your civil partner’s doctor or other medical professional to the court so it can ask for a certificate of capacity.

After you apply

If the Official Solicitor agrees to act as litigation friend for your civil partner, you’ll be able to end your civil partnership.

Contact the Official Solicitor’s staff

Email or call the private family law team if you have an enquiry.


Growing your business

Plan for growth

Once your business is established and you’re making a profit on the products and services you sell to customers, you may want to start thinking about how to grow.

Many businesses think of growth in terms of increased sales, but it’s also important to focus on how to maintain or improve your profitability.

Things you can do to help grow your business include:

looking into ways of increasing your sales, both to existing customers and new customers

improving your products and services by researching and testing changes with your customers

developing new products and services, and selling them to new or existing markets

taking on staff or training your current staff, including working with apprentices and mentors

looking for additional sources of funding, such as bringing in new investors

thinking about selling your products or services online

work with a business mentor, who can help you think about how to do all of these things

As your business grows

You must register for VAT if your VAT taxable turnover reaches more than £85,000.

You may also find that a different legal structure is more suitable as your business grows.

Contact the business support helpline in your area for help and advice on starting or growing your business.

Get extra funding

Growing your business, whether through increased sales or improved profitability, often means you need to invest more. You can do this by:

investing previous profits back into your business

taking out a loan

selling shares to outside investors

looking for other sources of finance, including government-backed schemes

Find out which types of finance might work for your business.

Find public finance using the finance finder tool, or search for private finance.

Professional advisers such as accountants can help you to work out whether it makes financial sense to take on loans or investment. You should take legal advice before taking on new investment in your business.

Find a chartered accountant on the Institute of Chartered Accountants (ICAEW) website, or a solicitor on the Law Society website.

Taking out a loan

You should make sure that your business will be able to pay back the debt before you take out a loan. Repayments are often made in instalments over a number of years, and you’ll need to pay off any interest on outstanding debts.

If you’re a sole trader looking for a loan, a lender might ask you to provide a personal guarantee or promise to hand over assets like your house or car if you can’t repay the loan.

Selling shares

If you’re thinking of bringing in new investors, they’ll want to know how much your business could increase in value if they buy shares. To work this out, they’ll need to know how much their investment will increase your sales and profitability.

You’ll need to provide potential lenders and investors with a financial model showing:

how your business will spend the extra money to increase sales and profitability

how initial costs and increased ongoing costs will affect your cash flow

Increases in sales usually only happen after taking on additional costs like employing more staff, moving to larger premises or putting in bigger orders for raw materials. You’ll need to take all of these into account in your financial planning.

Increase sales to existing customers

How you go about increasing sales depends on your circumstances and how your business is performing. You might choose to focus on customers who’ve already bought from you, or you could try to win new customers in your local area, nationally or overseas.

The simplest way to increase your sales is to sell more of the products or services you’re selling at the moment to the customers who are already buying them. For most businesses this involves:

persuading one-off customers to become repeat customers

finding customers who’ve stopped buying from you and trying to win them back

selling more of the same products or services to your regular customers

By keeping a record of who your customers are and what you sold to them, you can work out who’s stopped buying from you, and who might consider buying more. Targeting these customers is often a cheaper and more effective way to increase sales than trying to find new ones.

Review your prices

Regularly reviewing your prices and checking them against your competitors can be an effective way of increasing your sales, profits or both.

You should try to estimate the likely effect of different price changes on the sales, cash flow and profitability of your business before making any changes. To do this successfully, you need to understand:

the ‘cost structure’ of your business (including regular ‘fixed’ costs, and ‘variable’ costs that change according to your business’ activity)

the value your customers place on your products and services

It’s worth bearing in mind that offering a discount can sometimes reduce your overall profitability, even if your sales go up. Equally, you might be able to make more profit overall by increasing prices, even if you’re selling fewer items.

Small changes to pricing like providing loyalty schemes or bulk discounts can increase sales to both existing and former customers.

You should also regularly check the price you’re selling products and services at against competitors. This will help you find out if you’re:

losing customers who get the same product or service elsewhere for less money

sacrificing profitability, because customers are willing to pay more than you’re charging them

Find resources on pricing strategy and increasing sales on the Marketing Donut website.

Attract new customers

One way of finding new customers for your products and services is by increasing awareness in your local area. You can do this by:

asking your customers to recommend you to their friends and colleagues

advertising in local media

using other forms of marketing, including online

You could also talk to potential customers who don’t use your business at the moment and find out what it would take for them to switch from your competition.

Expanding outside your local area

If you want to sell your product or service through new sales channels or markets elsewhere in the UK, there are different organisations you’ll need to work with, including:

wholesalers

retailers, including online retailers

distributors

You could try using direct marketing to find new customers.

Search the contracts finder for business opportunities from government departments and agencies.

Expanding outside the UK

You might decide to find new customers outside the UK by exporting your products. The Department for International Trade offers help and resources on successfully selling your products and services to customers in other countries.

Make sure that you’re aware of your legal responsibilities around the sale of goods and services, and data protection.

Improve your products and services

If you’re looking to grow your business by improving your products and services, start by focusing on your existing customers and their needs.

Talk to them, and find out their views on:

what they’re buying from you, and what they value most about it

what you could do to make it more useful and valuable to them

what would encourage them to buy more

Make changes based on feedback

Getting customer feedback should help you to identify ways to improve what you’re offering to your current customers. It may also allow you to:

increase the price you charge to your existing customers

attract new customers whose needs you weren’t meeting before

Try to ensure that any changes you make will increase your sales and profitability enough to make the time and money you’ll need to invest worthwhile.

If possible, you should test out prototypes of improved products or services with a few existing customers. By doing this, you can get their feedback and avoid making unpopular changes that could harm your business.

Doing this is equally important for all businesses, whether you’re starting up or established, improving an existing product or service, or bringing something new to market.

Think about selling online

Selling your products or services on the internet can:

help improve efficiency and productivity

reduce costs

help you communicate better with customers and suppliers

You can use analytics software to help you understand how customers use your site and show you ways to improve it.

Consider the costs of going online

You’ll need to make sure you understand all the costs involved (eg hardware, software, hosting, training, services, maintenance and support, upgrades etc). You must also provide your customers with certain information.

Online security

If you’re going to sell online, protect your customers and business with measures to keep systems and data safe from theft or hackers.

Develop new products and services

If you’re planning to develop new products and services, you should test them with your customers with just as much care and attention as a new business going to market for the first time.

By making sure there’s real demand for what you’re planning to sell, you can find out about any problems and fix them before you’ve wasted too much time, effort and money.

Talk to existing and potential customers and find out about their needs.

If you can, develop a prototype as quickly and cheaply as possible. Work out the minimum investment that lets you find out if you’re meeting a real need.

Test it with customers and get feedback. Find out what they’d be willing to pay for it. Try out different prices with different customers in a consistent, realistic way to see what people will really pay. Can you make enough money for a return on the investment you’d need to develop your new product or service?

If there are are other businesses competing for your market, think about what will make you different. Can you provide something better than what’s already available? And is it significantly different or better to what you’re already offering?

Benefits of development

By developing new products and services, you can:

sell more to existing customers (making the most of existing relationships is cheaper than finding new customers)

spread fixed costs like premises or machinery across a range of products

diversify the products you offer so you’re less reliant on certain customers or markets

Another way of expanding your product range is by importing goods from overseas to sell in the UK. Make sure you know the rules on things like tax and commodity codes if you’re planning to import.

Business ideas and intellectual property

If you’ve invented something or come up with an original idea that you want to turn into a product or service, you should register it to make sure nobody copies it without your permission. Find out about trademarks, copyright and intellectual property.

You can find local support in England for coming up with business ideas and developing them on the National Enterprise Network website.

Other sources of advice and support include:

the Design Council’s business resources

the British Library business and intellectual property centre

You may be able to benefit from developing your idea in partnership with experts in academic institutions through Knowledge Transfer Partnerships.

Hire and train staff

As your business expands, you’ll need more capacity to produce or provide your product or service, and a wider range of skills. The easiest ways of achieving this are usually by taking on new staff, or training your existing workforce.

Employing people

By taking on new people you can spread your workload, expand production and take advantage of new and different skills and expertise.

This applies whether you already have employees, or you started your business on your own as a sole trader and are thinking about taking on staff for the first time. Find out about your responsibilities when employing someone.

Apprenticeships

Taking on an apprentice allows you to grow your capacity by investing in people who want to learn. Your business benefits from the skills they develop as they train both on and off the job.

Find out about the practical steps involved in taking on an apprentice.

Training your staff

You can improve the range and level of skills in your business by training up existing staff. Giving staff training opportunities can increase their loyalty to your company and their productivity - as well as your profits.

Schemes and organisations that can help you to grow your business through training include:

finding training courses specific to your business area through the National Careers Service

using a business improvement framework, like Investors in People

Work with a mentor

Business mentors can help you develop your ideas for growth by sharing their skills, expertise, experience and contacts.

Find free and paid-for mentors in your area with knowledge and experience relevant to your business on the ‘mentorsme’ website, or Business mentoring if you’re in Wales. Mentorsme also has advice on how to pick the right mentor for your business.


Set up a business partnership

Setting up

In a partnership, you and your partner (or partners) personally share responsibility for your business. This includes:

any losses your business makes

bills for things you buy for your business, like stock or equipment

Partners share the business’s profits, and each partner pays tax on their share.

A partner does not have to be an actual person. For example, a limited company counts as a ‘legal person’ and can also be a partner.

What you need to do

When you set up a business partnership you need to:

choose a name

choose a ‘nominated partner’

register with HM Revenue and Customs (HMRC)

The ‘nominated partner’ is responsible for managing the partnership’s tax returns and keeping business records.

There are different rules for limited partnerships and limited liability partnerships (LLPs).

Naming your partnership

You can trade under your own names, or you can choose another name for your business. You do not need to register your name.

You must include all the partners’ names and the business name (if you have one) on official paperwork, for example invoices and letters.

Business names

Business partnership names must not:

include ‘limited’, ‘Ltd’, ‘limited liability partnership, ‘LLP’, ‘public limited company’ or ‘plc’

be offensive

be the same as an existing trade mark

Your name also cannot contain a ‘sensitive’ word or expression, or suggest a connection with government or local authorities, unless you get permission.

Check which words you need permission to use, and who from.

You’ll need to register your name as a trade mark if you want to stop people from trading under your business name.

Register the partnership

You must register your partnership for Self Assessment with HM Revenue and Customs (HMRC) if you’re the ‘nominated partner’. This means you’re responsible for sending the partnership tax return.

The other partners need to register separately.

Register a partner or partnership

All partners also need to send their own tax returns as individuals.

You must register by 5 October in your business’s second tax year, or you could be charged a penalty.

Other ways to register

You can also register the partnership using form SA400 if you cannot register online. You can register as a partner using form SA401.

Registering for VAT

You must also register for VAT if your VAT taxable turnover is more than £85,000. You can choose to register if it’s below this, for example to reclaim VAT on business supplies.

You can appoint an agent to deal with HMRC on your behalf.


Accounts and tax returns for private limited companies

Overview

After the end of its financial year, your private limited company must prepare:

full (‘statutory’) annual accounts

a Company Tax Return

You need your accounts and tax return to meet deadlines for filing with Companies House and HM Revenue and Customs (HMRC).

You can also use them to work out how much Corporation Tax to pay.

Action | Deadline

File first accounts with Companies House | 21 months after the date you registered with Companies House

File annual accounts with Companies House | 9 months after your company’s financial year ends

Pay Corporation Tax or tell HMRC that your limited company does not owe any | 9 months and 1 day after your ‘accounting period’ for Corporation Tax ends

File a Company Tax Return | 12 months after your accounting period for Corporation Tax ends

Your accounting period for Corporation Tax is the time covered by your Company Tax Return. It’s normally the same 12 months as the company financial year covered by your annual accounts.

Filing your accounts and tax return

You can file with Companies House and HMRC together or separately.

You must take additional steps:

at the end of your company’s first year

if you restart a dormant company

There are penalties for filing late with Companies House and HMRC.

Filing accounts and tax returns

You file your accounts with Companies House and your Company Tax Return with HM Revenue and Customs (HMRC).

You may be able to file them together if you have a private limited company that does not need an auditor.

What you want to do | How you can do it

File accounts and tax return together | Use HMRC’s online service or accounting software

File accounts with Companies House separately | Send your accounts to Companies House online

File tax return with HMRC separately | Use HMRC’s online service or accounting software

You’ll need your:

HMRC online account details

company registration number

Companies House online account details

Corrections and amendments

Check what you must do to correct or amend your:

accounts

tax return

Using accountants or tax advisers to file for you

You can:

give your accountant or tax adviser your Companies House authentication code so they can file your accounts

appoint an agent to file your Company Tax Return

Apply to extend your accounts filing deadline

You can apply to extend your accounts filing deadline with Companies House if you cannot send your accounts because of an event outside your control - for example, if a fire destroyed company records before your filing deadline.

You must apply for the extension before your filing deadline.

Apply for an extension due to coronavirus (COVID-19)

You can apply for an immediate 3 month extension if your company is affected by coronavirus. You must apply before your filing deadline.

You may not be eligible if you’ve already extended your filing deadline, or shortened your accounting period.

How to apply

You can apply online or by post.

Apply online

To apply online you’ll need:

your company number

information about why you need more time

any documents you have that support your application

Apply by post

You can write to Companies House to apply for an extension. It is taking longer than usual to process applications because of coronavirus.

You should explain what’s happened and how much more time you’ll need to file your accounts.

You must apply to the correct office where your company is registered.


Appeal to the tax tribunal

Overview

You can appeal to the First-tier Tribunal (Tax) if you want to challenge some decisions by:

HM Revenue and Customs (HMRC)

Border Force

the National Crime Agency (NCA)

the Welsh Revenue Authority (WRA)

The tribunal is independent of government and will listen to both sides of the argument before making a decision.

This guide is also available in Welsh (Cymraeg).

Appeal an HMRC decision

You can appeal some decisions about:

‘direct tax’, for example Income Tax, PAYE tax, Corporation Tax, Capital Gains Tax, National Insurance contributions, Statutory Sick Pay, Statutory Maternity Pay, Inheritance Tax - you must appeal to HMRC first

‘indirect tax’, for example VAT, excise duty, customs duty - you can usually appeal straight to the tribunal

You must appeal within the time limit - it’ll usually be on your decision letter.

You can apply for alternative dispute resolution (ADR) after you’ve appealed an HMRC decision.

There’s a different way to appeal decisions about tax credits and Council Tax.

If you cannot pay

You must usually pay upfront what HMRC says you owe. Make a hardship application if you cannot. Appeal to the tribunal if HMRC will not let you delay payment.

You do not have to pay upfront if you’re appealing about a penalty.

Appeal about seized goods

You must ask HMRC or Border Force to take your case to the magistrates’ court (this is known as starting ‘condemnation proceedings’) if you think they should not have taken (or ‘seized’) your goods.

The tribunal cannot decide whether your goods were seized with good reason.

You may be able to appeal to the tribunal if HMRC or Border Force:

refuses to return your seized goods

says you need to pay to get your seized goods back

sends you an assessment for duty

tries to charge you a penalty

You must ask HMRC or Border Force to reconsider their decision before you can appeal.

Closure applications

You can apply for a ‘closure notice if HMRC opens an enquiry to check your tax return for ‘direct tax’ (for example Income Tax, Capital Gains Tax or Corporation Tax) and you want it to be closed.

The tribunal will decide when HMRC should close the enquiry.

You cannot apply for a closure notice if your tax return is being checked for ‘indirect tax’.

Appeal an NCA decision

The National Crime Agency (NCA) can check your tax return instead of HMRC in some cases, for example if they suspect you’ve been laundering money.

You can make an appeal if you do not agree with the decision by writing to the NCA.

Appeal a WRA decision

You can appeal some decisions about Land Transaction Tax and Landfill Disposals Tax.

You can also apply to close an enquiry into your tax return.

You must usually pay upfront what WRA says you owe. You can request to delay paying until you get a decision about your appeal.

Before you appeal, you can ask WRA to change their decision.

Help you can get

You may want to get help and advice before you appeal.

You can represent yourself or get legal advice to help with your appeal.

You can get free advice from:

Citizens Advice

TaxAid

TaxHelp for Older People, if you’re over 60

Read more detailed information about appealing to the tribunal.

Appeal to the tribunal

You can appeal to the tax tribunal online.

You’ll need:

a scan or photo of your original notice or review conclusion letter

reasons for your appeal, so the judge can understand your side of the argument

You can also use this service to apply to close an enquiry.

Start now

If you want someone to represent you

You need to download and fill in an authorisation form if the person representing you is not a practising solicitor or barrister.

Appeal by post

Download and fill in a notice of appeal form (T240).

If you’re applying to close an existing enquiry, download and fill in application form (T245).

Send your completed form to the tribunal. The address is on the form.

If you need help

Contact the tax tribunal helpline if you have any questions about your appeal. The helpline cannot give you legal advice.

What happens next

You’ll get a letter from the tribunal explaining what happens next. You might be asked to provide more documents to support your case.

Not all cases will have a hearing, but you can ask for one. You’ll usually get at least 14 days’ notice of the date of the hearing. The tribunal will write to you with details of what you need to do.

If you have a hearing

You’ll be told when and how the hearing will be held.

Your hearing may take place by phone, by video or in person. Read how to take part in a phone or video hearing.

You can watch a video about what happens at a video hearing.

Documents you’ll need

You’ll be asked for copies of all documents relevant to your appeal (such as letters, invoices and accounts) together with your notice of appeal.

You must also give the tribunal your decision letter and any response you made.

You might get sent a ‘bundle’ of documents before the hearing. You must have this with you if your case is ‘standard’ or ‘complex’.

Who’ll be at the hearing

The tribunal is made up of:

a tribunal panel, including a judge and, in some cases, a tax expert

a tribunal clerk

You can also ask any of the following people to the hearing:

a representative to act on your behalf, for example a lawyer, tax adviser or accountant

a friend, family member or colleague

a witness, if you need one

You will need to ask the permission of the court or tribunal for them to join.

What happens at the hearing

You (or your representative) will present your case to the tribunal. You must explain:

what has been agreed

what you think is wrong

what evidence you have to support you, like any documents or witnesses

Representatives from the other party will present the case against you.

The tribunal and the other party may also ask questions during the hearing.

The tribunal's decision

You’ll usually get the tribunal’s decision:

in writing, if you did not have a hearing (the decision will be based on the appeal form and other paperwork)

in writing within 1 month, if you’ve had a ‘basic’ case - you’ll sometimes get a decision on the day

in writing within 2 months, if you’ve had a ‘standard’ or ‘complex’ hearing

If you lose your case

If you lose your case, you may be able to:

get a decision ‘set aside’

ask for permission to appeal

Get a decision set aside

You can ask for a decision to be ‘set aside’ (cancelled), but only if you think there was a mistake in the process. The letter you get with the decision will tell you how to do this.
Contact Citizens Advice if you need help.

Ask for permission to appeal

You may be able to appeal against the decision if the tribunal made a legal mistake, for example if it did not:

apply the law correctly

fully explain its decision

Ask for full written reasons if you’ve not had them already. You must do this within 28 days of the date on the decision notice - the decision notice will tell you how.

Ask for permission to appeal - download the appeal form and read the guidance notes. You must do this within 56 days of the date given on the full written reasons.

Send the appeal form to:

After you send the form

A judge will decide if you can take your case to a higher tribunal, called the Upper Tribunal (Tax and Chancery). Appeal to the Upper Tribunal if you get permission.

If you’re refused permission to appeal

You can apply to the Upper Tribunal for permission to appeal if the First-tier Tribunal refuses, or only gives you permission to appeal on limited grounds.

Legislation and previous decisions

Read the rules the tribunal must follow and its decisions on previous cases.

Previous decisions

Search the decisions database to see how and why previous decisions have been made.

Legislation

The tribunal must follow the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009.

Read the practice direction and practice statements for more detailed guidance.

The tribunal was set up by the Tribunals, Courts and Enforcement Act 2007 and Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009.


Businesses and charging VAT

How VAT works

You can only charge VAT if your business is registered for VAT.

VAT is charged on things like:

business sales - for example when you sell goods and services

hiring or loaning goods to someone

selling business assets

commission

items sold to staff - for example canteen meals

business goods used for personal reasons

‘non-sales’ like bartering, part-exchange and gifts

These are known as ‘taxable supplies’. There are different rules for charities.

Responsibilities

VAT-registered businesses:

must charge VAT on their goods or services

may reclaim any VAT they’ve paid on business-related goods or services

must account for import VAT on their VAT return if they use import VAT this way (known as ‘postponed VAT accounting’)

If you’re a VAT-registered business you must report to HM Revenue and Customs (HMRC) the amount of VAT you’ve charged and the amount of VAT you’ve paid. This is done through your VAT Return which is usually due every 3 months.

You may want to appoint an agent to deal with HMRC on your behalf.

You must account for VAT on the full value of what you sell, even if you:

receive goods or services instead of money (for example if you take something in part-exchange)

haven’t charged any VAT to the customer - whatever price you charge is treated as including VAT

If you’ve charged more VAT than you’ve paid, you have to pay the difference to HMRC. If you’ve paid more VAT than you’ve charged, you can reclaim the difference from HMRC.

VAT rates

There are 3 different rates of VAT and you must make sure you charge the right amount.

Get a list of reduced or zero-rated goods and services.

Standard rate

Most goods and services are standard rate. You should charge this rate unless the goods or services are classed as reduced or zero-rated.

This includes any goods below the distance selling threshold you supply from Northern Ireland to non-VAT registered EU customers. If you go over the threshold, you’ll have to register for VAT in that country.

Reduced rate

When you charge this rate can depend on what the item is as well as the circumstances of the sale, for example:

children’s car seats and domestic fuel or power are always charged at 5%

mobility aids for older people are only charged at 5% if they’re for someone over 60 and the goods are installed in their home

Zero rate

Zero-rated means that the goods are still VAT-taxable but the rate of VAT you must charge your customers is 0%. You still have to record them in your VAT accounts and report them on your VAT Return. Examples include:

books and newspapers

children’s clothes and shoes

motorcycle helmets

most goods you export from England, Wales and Scotland (Great Britain) to a country outside the UK

most goods you export from Northern Ireland to a country outside the EU and the UK

goods you supply from Northern Ireland to a VAT registered EU business - you can check if the VAT number is valid

If you sent goods to the EU from Northern Ireland, you’ll need their VAT number and paperwork proving that the goods have been sent within certain time limits (usually 3 months).

Rates can change and you must apply any changes to the rates from the date they change.

What you must do when charging VAT

You need to know the right VAT rate so you can charge it correctly and reclaim it on your purchases.

If a transaction is a standard, reduced or zero-rated taxable supply, you must:

charge the right rate of VAT

work out the VAT if a single price is shown that includes or excludes VAT

show the VAT information on your invoice

show the transaction in your VAT account - a summary of your VAT

show the amount on your VAT Return

You may be able to reclaim the VAT on purchases that relate to these sales.

You cannot claim back all of the amount you’ve paid if you pay the wrong amount of VAT on a purchase.

VAT-inclusive and exclusive prices

You’ll need to make a calculation when charging VAT on goods or services, or when working out the amount of VAT you can claim back on items which were sold inclusive of VAT.

VAT-inclusive prices

To work out a price including the standard rate of VAT (20%), multiply the price excluding VAT by 1.2.

To work out a price including the reduced rate of VAT (5%), multiply the price excluding VAT by 1.05.

VAT-exclusive prices

To work out a price excluding the standard rate of VAT (20%) divide the price including VAT by 1.2.

To work out a price excluding the reduced rate of VAT (5%) divide the price including VAT by 1.05.

When not to charge VAT

You cannot charge VAT on exempt or ‘out of scope’ items.

Exempt goods and services

Exempt goods or services are supplies that you cannot charge VAT on.

If you buy or sell an exempt item you should still record the transaction in your general business accounts. Examples of exempt items include:

insurance

postage stamps or services

health services provided by doctors

Get a list of goods and services that are VAT exempt.

VAT registration

Businesses that sell only VAT-exempt goods and services cannot register for VAT.

If you start selling items that aren’t exempt, you can register for VAT voluntarily. You must register if the total value of non-exempt goods and services goes over the VAT taxable turnover threshold.

Out of scope

Some goods and services are outside the VAT tax system so you cannot charge or reclaim the VAT on them. For example, out of scope items include:

goods or services you buy and use outside the UK

statutory fees - like the London congestion charge

goods you sell as part of a hobby - like stamps from a collection

donations to a charity - if given without receiving anything in return

Charging VAT to charities

As a VAT-registered business, you can sell certain goods and services to charities at the zero or reduced rate of VAT.

It’s your responsibility to check the charity is eligible, and to apply the correct rate.

Community amateur sports clubs (CASCs) don’t qualify for VAT reliefs for charities.

Check the charity is eligible

To make sure the charity is eligible, ask them for:

evidence that they’re a charity

a written declaration or ‘certificate’ confirming they meet the conditions for the particular VAT relief

Evidence of charitable status

The charity should give you either:

their Charity Commission registration number

a letter of recognition from HM Revenue and Customs (HMRC) if they’re not registered with the Charity Commission for England and Wales (for example if they’re a Scottish or Northern Irish charity)

Written declaration

Charities are legally required to give you an eligibility certificate when you supply eligible building or construction services to them at zero VAT. The certificate must contain specific information.

A declaration is not legally required for other items you sell at the zero or reduced rate, but you should ask for one to prove the charity is eligible for the relief.

These sample declarations contain examples of the information a charity should give you when buying:

medical and scientific equipment, motor vehicles and computer software

charity advertising

goods and services for disabled people

The written declaration should be separate from the order form or invoice for the goods or services the charity is buying.

You must keep the completed declarations for at least 4 years.

Items that qualify for the reduced rate

You may be able to apply the reduced VAT rate when you sell fuel and power in certain circumstances to an eligible charity.

Items that qualify for the zero rate

You may be able to apply zero VAT when you sell the following to an eligible charity:

advertising and items for collecting donations

aids for disabled people

construction services

drugs and chemicals

equipment for making ‘talking’ books and newspapers

lifeboats and associated equipment, including fuel

medicine or ingredients for medicine

resuscitation training models

Equipment for medical and veterinary use

You may also be able to zero-rate some other medical and veterinary equipment when you sell it to:

certain health bodies, for example NHS Trusts

not-for-profit research institutions

charities that provide institutional care, or medical or surgical treatment for chronically sick or disabled people

charities that provide transport services for disabled people

charities that provide rescue or first aid services to humans or animals

someone buying it specifically for donation to one of these bodies

The money used to buy the equipment must be from charitable or donated funds. This should be stated on the eligibility declaration.

The eligible items include:

medical, veterinary and scientific equipment

ambulances

goods for disabled people

motor vehicles for medical use

rescue equipment

resuscitation training dummies

Returned goods

When you return goods to a supplier or a customer returns goods to you, the balance of payment can be settled by issuing either a:

replacement invoice

credit or debit note

If you exchange the goods for goods of the same value you don’t need to issue a new VAT invoice.

Credit and debit notes

These must show the same information as the VAT invoice and:

why it was issued

the total amount credited, excluding VAT

the number and date of the original VAT invoice

Discounts and free gifts

Discounts

VAT may have to be charged on discounts and deals.

Offer | How to charge VAT

Discounts | Charged on the discounted price (not the full price)

Gifts | Charged on the gift’s full value - there are some exceptions listed below

Multi-buys | Charged on the combined price if all the items have the same VAT rate. If not, VAT is ‘apportioned’ as mixed-rate goods

Money-off coupons, vouchers etc | No VAT due if given away free at time of a purchase. If not, VAT due on the price charged

‘Face value’ vouchers that can be used for more than one type of good or service | No VAT due, if sold at or below their monetary value

Redeemed face value vouchers | Charged on the full value of the transaction

Redeemed face value vouchers sold at a discount | Charged on the discounted value of the transaction

Link-save offers (buy one get one free or discounted) | VAT is apportioned as mixed-rate goods - there are exceptions

Exceptions for gifts and link-save offers

There’s no VAT due on gifts given to the same person if their total value in a 12 month period is less than £50.

VAT is charged on the combined value of link-save items if the incentive product:

has a resale value of less than £1

has a sale value of less than £5

costs you less than 20% of the total of the other items in the offer

isn’t sold at a separate price from the main product

Free goods and services

You don’t have to pay VAT on things like free samples if they meet certain conditions.

Supplies | Condition to meet so no VAT due

Free samples | Used for marketing purposes and provided in a quantity that lets potential customers test the product

Free loans of business assets | The cost of hiring the asset is included in something else you sell to the customer

Free gifts | The total cost of all gifts to the same person is less than £50 in a 12 month period

Free services | You don’t get any payment or goods or services in return


Capital Gains Tax for business

What you pay it on

You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) all or part of a business asset.

Business assets you may need to pay tax on include:

land and buildings

fixtures and fittings

plant and machinery, for example a digger

shares

registered trademarks

your business’s reputation

You’ll need to work out your gain to find out whether you need to pay tax.

You pay Capital Gains Tax if you’re a self-employed sole trader or in a business partnership. Other organisations like limited companies pay Corporation Tax on profits from selling their assets.

When you do not pay it

You do not usually need to pay tax on gifts to your husband, wife, civil partner or a charity.

Work out your gain

Your gain is usually the difference between what you paid for your business asset and what you sold it for.

Use the market value instead if:

you gave it away (there are different rules if it was to your spouse, civil partner or a charity)

you sold it for less than it was worth to help the buyer

you inherited the asset (and do not know the Inheritance Tax value)

you owned it before April 1982

If the asset was given to you and you claimed Gift Hold-Over Relief, use the amount it was originally bought for to work out your gain. If you paid less than it was worth, use the amount you paid for it.

Deduct costs

You can deduct certain costs of buying, selling or improving your asset from your gain.

Costs you can deduct include:

fees, for example for valuing or advertising assets

costs to improve assets (but not normal repairs)

Stamp Duty Land Tax and VAT (unless you can reclaim the VAT)

You cannot deduct certain costs. These include:

interest on a loan to buy your asset

costs you can claim as business expenses

Contact HM Revenue and Customs (HMRC) if you’re not sure whether you can deduct a certain cost.

Apply reliefs

You may be able to reduce or delay paying tax on your gains if you’re eligible for tax relief.

Work out if you need to pay

When you know your gain you need to work out if you need to report and pay Capital Gains Tax.

If you’re in a business partnership:

work out your share of each gain or loss

the nominated partner must fill in form SA803

You can get help with working out your tax, for example from an accountant.

Reporting a loss

The rules are different if you need to report a loss.

Tax relief

You may be able to reduce or delay the amount of Capital Gains Tax you have to pay if you’re eligible for tax relief.

Relief | Description | Eligibility

Entrepreneurs’ Relief | Pay 10% Capital Gains Tax on qualifying profits if you sell all or part of your business (instead of the normal rates) | For sole traders, business partners or those with shares in a ‘personal company’

Business Asset Rollover Relief | Delay paying Capital Gains Tax when you sell or dispose of some types of asset if you replace them | Buy the new asset within 3 years of disposing of the old one. Use the old and new assets in your business

Incorporation Relief | Delay paying Capital Gains Tax when you transfer your business to a company | Transfer all your business and its assets (except cash) in return for shares in the company

Gift Hold-Over Relief | Pay no Capital Gains Tax if you give away a business asset - the person you gave it to pays tax when they sell it | You used the business asset for trading as a sole trader or partner

Tax relief when you sell your home

You normally get Private Residence Relief when you sell or dispose of your main home, meaning you do not pay any Capital Gains Tax.

If you’ve used any part of your home just for business, you have to pay Capital Gains Tax on that part when you sell your home.

Disincorporation relief

You may be able to claim Disincorporation Relief if you become a partnership or sole trader having been a limited company.

If you acquire the company’s assets when it changes its business structure, you may have to pay Capital Gains Tax if you sell or dispose of them later - you’ll use their value, including any Disincorporation Relief, when you acquired them.

You can get help from an accountant or tax adviser.


Cash basis

Overview

‘Cash basis’ is a way to work out your income and expenses for your Self Assessment tax return, if you’re a sole trader or partner.

Why use cash basis

If you run a small business, cash basis accounting may suit you better than traditional accounting.

This is because you only need to declare money when it comes in and out of your business. At the end of the tax year, you won’t have to pay Income Tax on money you didn’t receive in your accounting period.

When cash basis might not suit your business

Cash basis probably won’t suit you if you:

want to claim interest or bank charges of more than £500 as an expense

run a business that’s more complex, for example you have high levels of stock

need to get finance for your business - a bank could ask to see accounts drawn up using traditional accounting to see what you owe and are due before agreeing a loan

have losses that you want to offset against other taxable income (‘sideways loss relief’)

Talk to a tax professional (such as an accountant) or legal adviser if you need help.

Find out if you’re eligible to use cash basis.

Who can use cash basis

You can use cash basis if you:

run a small self-employed business, for example sole trader or partnership

have a turnover of £150,000 or less a year

If you have more than one business, you must use cash basis for all your businesses. The combined turnover from your businesses must be less than £150,000.

If you use cash basis and your business grows during the tax year

You can stay in the scheme up to a total business turnover of £300,000 per year. Above that, you’ll need to use traditional accounting for your next tax return.

Who can’t use the scheme

Limited companies and limited liability partnerships can’t use cash basis.

There are also some specific types of businesses that can’t use the scheme:

Lloyd’s underwriters

farming businesses with a current herd basis election

farming and creative businesses with a section 221 ITTOIA profit averaging election

businesses that have claimed business premises renovation allowance

businesses that carry on a mineral extraction trade

businesses that have claimed research and development allowance

dealers in securities

relief for mineral royalties

lease premiums

ministers of religion

pool betting duty

intermediaries treated as making employment payments

managed service companies

waste disposal

cemeteries and crematoria

If you can’t use cash basis, you’ll need to use traditional accounting to work out your taxable profits.

Getting started

At the end of the tax year, work out your taxable profit from your cash basis income and expenses records.

Tick the cash basis box on the form when you send your return.

You can use cash basis for the 2013 to 2014 tax year onwards. If you’re sending a late tax return for tax years before this, you’ll need to use traditional accounting when working out your accounts.

Changing from traditional accounting to cash basis

Existing businesses using traditional accounting might have to make some adjustments when they switch to cash basis.

How to record income and expenses

You must keep records of all business income and expenses to work out your profit for your tax return.

Income

With cash basis, only record income you actually received in a tax year. Don’t count any money you’re owed but haven’t yet received.

You can choose how you record when money is received or paid (for example the date the money enters your account or the date a cheque is written) but you must use the same method each tax year.

All payments count - cash, card, cheque, payment in kind or any other method.

Expenses

Expenses are business costs you can deduct from your income to calculate your taxable profit.  In practice, this means your allowable expenses reduce your Income Tax.

Only count the expenses you’ve actually paid. Money you owe isn’t counted until you pay it.

Examples of allowable business expenses if you’re using cash basis are:

day to day running costs, such as electricity, fuel

admin costs, for example stationery

things you use in your business, such as machinery, computers, vans

interest and charges up to £500, for example interest on bank overdrafts

buying goods for resale

You can check what else counts as an allowable expense.

For the 2013 to 2014 tax year onwards you can also choose to use the simplified expenses scheme instead of calculating expenses for:

running a vehicle

working from home

making adjustments for living on your business premises

Cars and other equipment

If you buy a car for your business, you can claim the purchase as a capital allowance (but only if you’re not using simplified expenses to work out your business expenses for that vehicle).

Unlike traditional accounting, you claim other equipment you buy to keep and use in your business as a normal allowable business expense rather than as a capital allowance.

If you’re currently claiming capital allowances and want to switch to cash basis, HM Revenue and Customs (HMRC) have guidance on the changes you need to make.

Keep your records

You don’t need to send your records to HM Revenue and Customs (HMRC) when you send in your tax return but you need to keep them in case they ask to check them.

VAT registered businesses

You can start to use cash basis if you’re VAT registered as long as your income is £150,000 or less during the tax year.

You can record your business income and expenses either excluding or including VAT. However, you must treat income and expenses the same way.

If you choose to include VAT, you have to record:

VAT payments you make to HM Revenue and Customs (HMRC)  as expenses

VAT repayments you receive from HMRC as income


Charities and tax

Overview

As a charity you can get certain tax reliefs. To benefit you must be recognised by HM Revenue and Customs (HMRC).

Charities do not pay tax on most types of income as long as they use the money for charitable purposes.

You can claim back tax that’s been deducted, for example on bank interest and donations (this is known as Gift Aid).

This guide is also available in Welsh (Cymraeg).

When you need to pay tax

Your charity may need to pay tax if you’ve:

received income that does not qualify for tax relief

spent any of your income on non-charitable purposes

You need to complete a tax return if your charity has tax to pay.

Community amateur sports clubs (CASCs) get different tax reliefs.

Tax reliefs for charities

As a charity you do not pay tax on most of your income and gains if you use it for charitable purposes - this is known as ‘charitable expenditure’.

This includes tax:

on donations

on profits from trading

on rental or investment income, for example bank interest

on profits when you sell or ‘dispose of’ an asset, like property or shares

when you buy property

To get tax relief you must be recognised by HM Revenue and Customs (HMRC).

When you do pay tax

Charities pay tax on:

dividends received from UK companies before 6 April 2016

profits from developing land or property

purchases - but there are special VAT rules for charities

Charities pay business rates on non-domestic buildings, but they get an 80% discount.

You must pay tax on any money you do not use for charitable purposes. This is known as ‘non-charitable expenditure’.

Pay tax

You must complete a tax return if your charity needs to pay tax or if HMRC asks you to.

Reclaim tax

You can claim back tax that’s been deducted, for example on:

donations (this is known as Gift Aid)

bank interest

Get recognition for tax purposes

To get tax relief your charity must be:

based in the UK, EU, Iceland, Liechtenstein or Norway

established for charitable purposes only

registered with the Charity Commission or another regulator, if this applies to you

run by ‘fit and proper persons’

Apply for recognition

Register your charity’s details using HMRC’s online service.

Reclaim tax

If you receive income with tax deducted, for example donations you can claim Gift Aid on, you can claim it back:

online, using the Charities Online service

through software that works with Charities Online

by post, using form ChR1 - call the helpline to order it

Bank interest

You can arrange to receive interest without tax deducted. Show your bank your letter of recognition from HM Revenue and Customs (HMRC).

If tax has already been taken from your interest you can claim it back for:

the current tax year by asking your bank

previous tax years by claiming it from HMRC

Pay tax

If your charity has income that does not qualify for tax relief you must complete a tax return.

If you have no tax to pay, complete a tax return only if HM Revenue and Customs (HMRC) asks you to.

If your charity’s income is over £10,000 you must submit an annual return to the Charity Commission.

Company Tax Returns

Complete a Company Tax Return if your charity is a limited company or unincorporated association. Include the supplementary pages for charities and community amateur sports clubs (CASCs).

A charity is a limited company if it was set up by a:

constitution

memorandum and articles of association

royal charter or Act of Parliament

Limited companies must also send annual accounts to Companies House.

Trusts

Complete a Trust and Estate Self Assessment tax return if your charity is a trust. A charity is a trust if it was set up by a trust deed or will.

Penalties and deadlines

You must complete a tax return when HMRC asks you to, even if no tax is due.

You may have to pay a penalty if your tax return is late or you do not complete one when you should.

The deadline depends on whether you complete a Company Tax Return or a Self Assessment tax return.


Claim capital allowances

Overview

You can claim capital allowances when you buy assets that you keep to use in your business, for example:

equipment

machinery

business vehicles, for example cars, vans or lorries

These are known as plant and machinery.

You can deduct some or all of the value of the item from your profits before you pay tax.

This guide is also available in Welsh (Cymraeg).

If you’re a sole trader or partner and have an income of £150,000 or less a year, you may be able to use a simpler system called cash basis instead.

Work out the value of your item

In most cases, the value is what you paid for the item. Use the market value (the amount you’d expect to sell it for) instead if:

you owned it before you started using it in your business

it was a gift

Other business costs

You claim for the cost of things that are not business assets in a different way. This includes:

your business’s day-to-day running costs

items that it’s your trade to buy and sell

interest payments or finance costs for buying assets

Claim these costs as business expenses if you’re a sole trader or partner, or deduct from your profits as a business cost if you’re a limited company.

Other capital allowances

As well as plant and machinery, you can also claim capital allowances for:

renovating business premises in disadvantaged areas of the UK

extracting minerals

research and development

‘know-how’ (intellectual property about industrial techniques)

patents

dredging

structure and buildings

If you let out residential property

You can only claim for items in residential property if your business qualifies as a furnished holiday lettings business. In each year the property must be:

available for holiday letting for 210 days

let for 105 days or more

What you can claim on

You can claim capital allowances on items that you keep to use in your business - these are known as ‘plant and machinery’.

In most cases you can deduct the full cost of these items from your profits before tax using annual investment allowance (AIA).

What does not count as plant and machinery

You cannot claim capital allowances on:

things you lease - you must own them

buildings, including doors, gates, shutters, mains water and gas systems

land and structures, for example bridges, roads, docks

items used only for business entertainment, for example a yacht or karaoke machine

What counts as plant and machinery

Plant and machinery includes:

items that you keep to use in your business, including cars

costs of demolishing plant and machinery

parts of a building considered integral, known as ‘integral features’

some fixtures, for example fitted kitchens or bathroom suites

alterations to a building to install other plant and machinery - this does not include repairs

Claim repairs as business expenses if you’re a sole trader or partner - deduct from your profits as a business cost if you’re a limited company.

Integral features

Integral features are:

lifts, escalators and moving walkways

space and water heating systems

air-conditioning and air cooling systems

hot and cold water systems (but not toilet and kitchen facilities)

electrical systems, including lighting systems

external solar shading

Fixtures

You can claim for fixtures, for example:

fitted kitchens

bathroom suites

fire alarm and CCTV systems

You can claim if you rent or own the building, but only the person who bought the item can claim.

When you buy a building from a previous business owner you can only claim for integral features and fixtures that they claimed for.

You must agree the value of the fixtures with the seller. If you do not you cannot claim for them. Agreeing the value also means the person selling the assets can account correctly for them.

If you let residential property

You can only claim for items in residential property if either:

you run a furnished holiday lettings business

the item is in the common parts of a residential building, for example a table in the hallway of a block of flats

Care workers

There are special rules if you run a care business.

Annual investment allowance

You can deduct the full value of an item that qualifies for annual investment allowance (AIA) from your profits before tax.

If you sell the item after claiming AIA you may need to pay tax.

What you can claim on

You can claim AIA on most plant and machinery up to the AIA amount.

What you cannot claim on

You cannot claim AIA on:

cars

items you owned for another reason before you started using them in your business

items given to you or your business

Claim writing down allowances instead.

The AIA amount

The AIA amount has temporarily increased to £1 million between 1 January 2019 and 31 December 2020.

Changes to the AIA

The AIA amount has changed several times since April 2008.

If the AIA changed in the period you’re claiming for, you need to adjust the amount you can claim.

AIA | Sole traders/partners | Limited companies

1 million | 1 January 2019 - 31 December 2020 | 1 January 2019 - 31 December 2020

£200,000 | 1 January 2016 - 31 December 2018 | 1 January 2016 - 31 December 2018

£500,000 | 6 April 2014 - 31 December 2015 | 1 April 2014 - 31 December 2015

£250,000 | 1 January 2013 - 5 April 2014 | 1 January 2013 - 31 March 2014

£25,000 | 6 April 2012 - 31 December 2012 | 1 April 2012 - 31 December 2012

£100,000 | 6 April 2010 - 5 April 2012 | 1 April 2010 - 31 March 2012

£50,000 | 6 April 2008 - 5 April 2010 | 1 April 2008 - 31 March 2010

You get a new allowance for each accounting period.

If your accounting period is more or less than 12 months

Adjust your AIA if your accounting period is more or less than 12 months.

The rules are different if your accounting period is longer than 18 months or you have a gap or overlap between accounting periods.

When you can claim

You can only claim AIA in the period you bought the item.

The date you bought it is:

when you signed the contract, if payment is due within less than 4 months

when payment’s due, if it’s due more than 4 months later

If you buy something under a hire purchase contract you can claim for the payments you have not made yet when you start using the item. You cannot claim on the interest payments.

If your business closes, you cannot claim AIA for items bought in the final accounting period.

If you do not want to claim the full cost

If you do not want to claim the full cost, for example you have low profits, you can claim:

writing down allowances instead

part of the cost as AIA and part as writing down allowances

Items you also use outside your business

You cannot claim the full value of items you also use outside your business if you’re a sole trader or partner. Reduce the capital allowances you claim by the amount you use the asset outside your business.

If you spend more than the AIA amount

Claim writing down allowances on any amount above the AIA. If a single item takes you above the AIA amount you can split the value between the types of allowance.

Mixed partnerships

AIA is not available for partnerships where one of the partners is a company or another partnership.

More than one business or trade

If you’re a sole trader or a partner and you have more than one business or trade, each business usually gets an AIA.

You only get one AIA if the businesses are both:

controlled by the same person

in the same premises or have similar activities

If 2 or more limited companies are controlled by the same person they only get one AIA between them. They can choose how to share the AIA.

How to claim

Claim on your tax return.

First year allowances

If you buy an asset that qualifies for first year allowances you can deduct the full cost from your profits before tax.

You can claim first year allowances in addition to annual investment allowance - they do not count towards your AIA limit.

What qualifies

You can claim ‘enhanced capital allowances’ (a type of first year allowances) for the following energy and water efficient equipment:

some cars with low CO2 emissions

energy saving equipment that’s on the energy technology product list, for example certain motors

water saving equipment that’s on the water efficient technologies product list, for example meters, efficient toilets and taps

plant and machinery for gas refuelling stations, for example storage tanks, pumps

gas, biogas and hydrogen refuelling equipment

new zero-emission goods vehicles

You cannot normally claim on items your business buys to lease to other people or for use within a home you let out.

How to claim

Claim on your tax return.

If you do not claim all the first year allowances you’re entitled to, you can claim part of the cost in the next accounting period using writing down allowances.

Business cars

You can claim capital allowances on cars you buy and use in your business. This means you can deduct part of the value from your profits before you pay tax.

Use writing down allowances to work out what you can claim - cars do not qualify for annual investment allowance (AIA).

Sole traders and partners

If you’re a sole trader or a partner you can claim simplified mileage expenses on business vehicles instead - as long as you have not already claimed for them in another way.

Employees

If you’re an employee you cannot claim capital allowances for cars, motorbikes and bicycles you use for work, but you may be able to claim for business mileage and fuel costs.

What counts as a car

For capital allowances a car is a type of vehicle that:

is suitable for private use - this includes motorhomes

most people use privately

was not built for transporting goods

What does not count

Because they do not count as cars you can claim AIA on:

motorcycles - apart from those bought before 6 April 2009

lorries, vans and trucks

Rates for cars

The rate you can claim depends on the CO2 emissions of your car and the date you bought it.

The main and special rates apply from 1 April for limited companies, and 6 April for sole traders and partners. The first year allowances rate applies from 1 April for all businesses.

Cars bought from April 2021

Description of car | What you can claim

New and unused, CO2 emissions are 0g/km (or car is electric) | First year allowances

New and unused, CO2 emissions are between 1g/km and 50g/km | Main rate allowances

Second hand, CO2 emissions are between 1g/km and 50g/km (or car is electric) | Main rate allowances

New or second hand, CO2 emissions are above 50g/km | Special rate allowances

Cars bought between April 2018 and April 2021

Description of car | What you can claim

New and unused, CO2 emissions are 50g/km or less (or car is electric) | First year allowances

New and unused, CO2 emissions are between 50g/km and 110g/km | Main rate allowances

Second hand, CO2 emissions are 110g/km or less (or car is electric) | Main rate allowances

New or second hand, CO2 emissions are above 110g/km | Special rate allowances

Cars bought between April 2015 and April 2018

Description of car | What you can claim

New and unused, CO2 emissions are 75g/km or less (or car is electric) | First year allowances

New and unused, CO2 emissions are between 75g/km and 130g/km | Main rate allowances

Second hand, CO2 emissions are 130g/km or less (or car is electric) | Main rate allowances

New or second hand, CO2 emissions are above 130g/km | Special rate allowances

Cars bought between April 2013 and April 2015

Description of car | What you can claim

New and unused, CO2 emissions are 95g/km or less (or car is electric) | First year allowances

New and unused, CO2 emissions are between 95g/km and 130g/km | Main rate allowances

Cars bought between April 2009 and April 2013

Description of car | What you can claim

New and unused, CO2 emissions are 110g/km or less (or car is electric) | First year allowances

New and unused, CO2 emissions are between 110g/km and 160g/km | Main rate allowances

Second hand, CO2 emissions are 160g/km or less (or car is electric) | Main rate allowances

New or second hand, CO2 emissions above 160g/km | Special rate allowances

Move the balance of any cars bought before April 2009 to your main rate allowances pool.

If your car does not have an emissions figure use the special rate - use the main rate if it was registered before 1 March 2001.

Using cars outside your business

If you’re a sole trader or partner and you also use your car outside your business, calculate how much you can claim based on the amount of business use.

If your business provides a car for an employee or director you can claim capital allowances on the full cost. You may need to report it as a benefit if they use it personally.

How to claim

When you’ve worked out your capital allowances, claim on your:

Self Assessment tax return if you’re a sole trader

partnership tax return if you’re a partner

Company Tax Return if you’re a limited company - you must include a separate capital allowances calculation

Employees must claim in a different way.

The amount you can claim is deducted from your profits.

When you can claim

You must claim in the accounting period you bought the item if you want to claim the full value under:

annual investment allowance

first year allowances

If you do not want to claim the full value you can claim part of it using writing down allowances. You can do this at any time as long as you still own the item.

When you bought it

The date you bought it is:

when you signed the contract, if payment is due within less than 4 months

when payment’s due, if it’s due more than 4 months later


Company Tax Returns

Overview

Your company or association must file a Company Tax Return if you get a ‘notice to deliver a Company Tax Return’ from HM Revenue and Customs (HMRC).

You must still send a return if you make a loss or have no Corporation Tax to pay.

You do not send a Company Tax Return if you’re self-employed as a sole trader or in a partnership - but you must send a Self Assessment return.

What it involves

When you file your tax return, you work out your:

profit or loss for Corporation Tax (this is different from the profit or loss shown in your annual accounts)

Corporation Tax bill

You can either get an accountant to prepare and file your tax return or do it yourself.

If you have a limited company, you may be able to file your accounts with Companies House at the same time as your tax return.

Deadlines

The deadline for your tax return is 12 months after the end of the accounting period it covers. You’ll have to pay a penalty if you miss the deadline.

There’s a separate deadline to pay your Corporation Tax bill. It’s usually 9 months and one day after the end of the accounting period.

Penalties for late filing

You’ll have to pay penalties if you do not file your Company Tax Return by the deadline.

Time after your deadline | Penalty

1 day | £100

3 months | Another £100

6 months | HM Revenue and Customs (HMRC) will estimate your Corporation Tax bill and add a penalty of 10% the unpaid tax

12 months | Another 10% of any unpaid tax

If your tax return is late 3 times in a row, the £100 penalties are increased to £500 each.

If your tax return is more than 6 months late

If your tax return is 6 months late, HMRC will write telling you how much Corporation Tax they think you must pay. This is called a ‘tax determination’. You cannot appeal against it.

You must pay the Corporation Tax due and file your tax return. HMRC will recalculate the interest and penalties you need to pay.

Appeals

If you have a reasonable excuse, you can appeal against a late filing penalty by writing to your company’s Corporation Tax office.

Check recent tax forms or letters from HMRC for your Corporation Tax office address or call the Corporation Tax helpline.

Making changes

You must usually make any changes (‘amendments’) within 12 months of the filing deadline.

You can:

log in to HM Revenue and Customs (HMRC) online services to amend your Company Tax Return

use commercial software

send a paper return or write to your company’s Corporation Tax office

Check recent tax forms or letters from HMRC for the Corporation Tax office address or call the helpline.

HMRC may charge you a penalty for errors.

HMRC can make a compliance check to check for errors in your Company Tax Return.