Business Taxes

The UK offers highly competitive tax rates for both start-up and established businesses. The business taxes that have to be paid will depend on the businesses legal structure, turnover and wider business activities.

Tax liability will depend on your business’ legal structure, turnover and business activities.

Starting a new company

The costs of incorporating a company in the UK are very low. Using the Companies House Web Incorporation Service, a limited company can be incorporated at a cost of £15.00. To incorporate a company, you will need a company name and address, details of at least one company director, and details of shareholders in the company and the number, class and value of shares in the company. 

In the UK, an employer must be aware of what business taxes they are required to pay to HM Revenue & Customs (HMRC). You must ensure that you submit your tax return to HMRC on time in order to avoid paying penalties. 

The taxes that you owe will vary and depend on your business legal structure, turnover and business activities. These may include:

VAT (Value Added Tax)

VAT is a tax that's charged on most goods and services that VAT-registered businesses provide in the UK. It's also charged on goods and some services that are imported from countries outside the European Union (EU), and brought into the UK from other EU countries.

Corporation Tax

Corporation Tax is a tax on the taxable profits of limited companies and other organisations including clubs, societies, associations and other unincorporated bodies.

Capital Gains Tax

Capital Gains Tax is a tax on the gain or profit you make when you sell, give away or otherwise dispose of something. It applies to assets that you own, such as shares or property. There's a tax-free allowance and some additional reliefs that may reduce your Capital Gains Tax bill. Sometimes you may have no tax to pay.

Business rates (non-domestic)

Non-domestic rates are also known as business rates. They are paid on non-domestic properties by all businesses and companies. The amount you pay is calculated by multiplying the non-domestic (business) rates per pound by the rateable value of the property your business occupies.

The National Business Rate is set by the Scottish Government. Business rates guidance and a calculator are available on the Scottish Business Portal.

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Investor Support Team

City of Edinburgh Council

E: invest@edinburgh.gov.uk

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