How do I make a business tax account in the UK?

Person making a business tax account
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    For small business owners, managing various business tax responsibilities like VAT, PAYE and Corporation Tax can be challenging, cumbersome and time-consuming. But there is a way to manage all your business taxes in real-time and in one place. Simply register for online tax services and say hello to a more efficient and hassle-free way of managing and paying business taxes.

    You can set up a Business Tax Account on the gov.uk website. You must enter personal and business details, such as your Unique Taxpayer Reference (UTR) and Government Gateway ID. Once verified, you’ll gain access to your online account to manage and pay all your business taxes.

    This online service provides a view of your business’s tax position at a glance and allows you to update your details, make payments, initiate tax refunds and communicate with HMRC on all other matters. In this article, we’ll look at how to set up your Business Tax Account and what it can do.

    For personalised tax advice from a caring family business, please contact Archimedia Accounts.

    What is a Business Tax Account?

    The Business Tax Account is an online service for businesses and self-employed individuals, provided by HMRC. It offers a convenient platform to manage various business tax obligations, including VAT, Corporation Tax, PAYE, and self-assessment tax returns.

    Who needs a Business Tax Account?

    Limited companies and self-employed sole traders can enjoy many advantages by registering an HMRC Business Tax Account. Although it is not a legal requirement, having one simplifies tax administration tasks such as filing returns, making payments, and communicating with HMRC. This makes compliance easier, saves time and helps protect your business from financial penalties.

    How does it work?

    The platform enables you to manage business tax online and make hassle-free payments. Once you log in, you will see a business tax summary and have access to all activities linked to the business tax ID number you used to sign up. It will generate a ‘tax card’ for each tax you have assigned to this ID.

    Your tax account page is split into two domains. The top-level menu is for managing your account, reading safe communications, and requesting assistance. The second domain is used to complete payments and refunds. For that, you’ll need a company tax report (or home page).

    What can the HMRC Business Tax Account be used for?

    The icon “Manage your account” in the top-level menu includes almost every type of action you may want to carry out, including:

    • Adding or removing a payment, obligation, or scheme
    • Provide a team member with a tax duty or scheme to which they can appeal
    • Authorise a tax agent to work on your behalf by adding, viewing, or changing their information
    • Adjust or display your account-sensitive information
    • Become notified of all the happenings digitally

    Setting up your business tax account

    To set up an HMRC Business Tax Account, follow these steps:

    1. Gather the necessary information
      • Unique Taxpayer Reference (UTR) – A 10-digit number assigned to you by HMRC when you register for self-assessment tax.
      • National Insurance Number (if you’re a sole trader).
      • Company Registration Number (CRN) (if you’re registering a limited company).
      • Government Gateway user ID and password (if you already have one).
    2. Visit the HMRC website – Go to the Business Tax Account registration page and choose the option to register for a new account.
    3. Enter your personal details, including your full name, address, date of birth, and contact information.
    4. Enter your business details:
    • UTR (for self-employed individuals).
    • CRN (for limited companies).
    • Date of commencement of business.
    • Type of business structure (e.g., sole trader, partnership, limited company).
    1. Verify your identity – This may involve answering security questions or providing additional documentation such as your passport or driving license.
    2. Set up your Government Gateway user ID and password – This will be used to access your Business Tax Account in the future, so keep it safe.
    3. Submit your application and await confirmation – You will have to sit tight for up to ten days for an activation code before you can use the service. As soon as you get it, you’re good to go.
    4. Activate your account – Follow the instructions in the confirmation email or activate your Business Tax Account.
    5. Log in to your account – Once activated, log in to your Business Tax Account using your Government Gateway user ID and password.

    Managing your HMRC account

    If you need to add or remove a tax account from your account, head to the “Manage Your Account” section. If you can’t locate it, find the “Get Online Access to a Tax, Duty or Scheme” on the home page.

    If you wish to remove a tax from your account, you can either deregister or select the option “Stop Access”. By doing so, information about this tax will no longer be visible in your company tax account. However, don’t worry about losing your tax data, as it will be automatically stored.

    By using your tax cards, you can easily check your tax situation, making things a lot easier and more convenient. For example, the option “when you need to file a return” tells you if you have overpaid tax and provides details about that particular tax return. You can then use your account to initiate a refund.

    You can view other tax-related activities, including:

    • payments you’ve received
    • interest on all late payments
    • previous year’s tax calculations
    • repayments owed to you by HMRC
    • direct debit payment plan
    • late business tax payment or late filing fees

    Looking for an accountant to help with business taxes? Get in touch with Archimedia Accounts

    At Archimedia Accounts, we serve small businesses in Nottingham and beyond. Our dedicated family team is committed to providing personalised tax solutions and offers regular tax planning sessions throughout the year to help you save money.

    With our friendly and professional service, we aim to not only protect your business profits but also safeguard your personal wealth. Contact Archimedia Accounts today for expert tax advice and support, and let us help you navigate the complexities of business taxation with ease. Your success is our priority.

    Picture of Chris Demetriou

    Chris Demetriou

    Chris is Head of Business Advisory​ at Archimedia Accounts and is a specialist in tax. For more advice book a FREE consultation:

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