Avoiding Common Tax Mistakes for UK Startups

Chosen theme: Avoiding Common Tax Mistakes for UK Startups. Welcome to a practical, founder-friendly guide packed with real stories, clear steps, and gentle nudges to keep you compliant, confident, and focused on growth. Subscribe, share your lessons, and help fellow founders avoid avoidable pain.

Know the Deadlines Before They Know You

Pay Corporation Tax typically nine months and one day after your accounting period ends, and file the CT600 within twelve months. Many founders flip those dates and incur penalties. Set recurring reminders now, then comment with your best deadline management hacks.

Watching the VAT threshold like a hawk

Track your rolling twelve-month taxable turnover and set alerts as you approach the VAT registration threshold, which has recently been £90,000. Aisha crossed it mid-quarter and owed backdated VAT plus surcharge. Share your monitoring method, and subscribe for our simple tracker template.

Charging the right VAT on the right things

Zero‑rated, reduced‑rated, exempt, or outside the scope—misclassification leads to underpaid VAT and sleepless nights. Review your product map monthly, especially if you sell digital services or books. Comment with your trickiest VAT edge case and how you solved it.

Records and Making Tax Digital Made Kind

Use MTD‑compatible software and reconcile weekly. Real‑time ledgers reveal VAT issues and spending leaks early. One founder caught duplicate invoices worth thousands before quarter end. Subscribe for our weekly bookkeeping checklist and share your favourite automation tip.

Records and Making Tax Digital Made Kind

Snap every receipt, tag it to a category, and capture the business purpose. HMRC accepts digital copies, so go paperless. A tidy evidence trail turns reviews into quick confirmations. Tell us your go‑to receipt app and why it works for your team.

People, Payroll, and Paying Yourself Safely

If you pay employees or directors via payroll, operate PAYE and submit Real Time Information on or before payday. Late filings attract penalties fast. Assign a payroll owner, automate submissions, and share your monthly ritual in the comments.

Eligibility is a test, not a vibe

Qualifying R&D seeks an advance in science or technology and tackles technical uncertainty. Routine app builds or cosmetic UI tweaks seldom qualify. Map uncertainties, hypotheses, and trials clearly. Comment with a concise summary of your project’s core technical challenge.

Documentation that stands up to scrutiny

Maintain timesheets, code repositories, test logs, and a technical narrative tied to costs. Allocate staff, consumables, and software carefully. Subcontractor rules can be nuanced. Subscribe for our evidence checklist and share which artifact helped you most during a review.

New forms, notifications, and compliance tone

Many claims now require an Additional Information Form, and first‑time claimants may need to pre‑notify within set timelines. Missing these steps risks rejection. Set reminders immediately and ask your peers how they streamlined their first compliant submission.

Set aside a realistic percentage of profits for Corporation Tax, plus VAT and PAYE buffers. A simple segregated pot keeps payroll safe during surprise bills. Share your reserve percentage and why it works for your revenue pattern.

Track VAT quarters, PAYE submissions, Corporation Tax payments, and returns, alongside your Confirmation Statement. Assign owners and backups. Subscribe to receive our editable deadline calendar, and tell us which date scares you most and why.

If you pivot products, hire abroad, or start exports, ask about tax before launch. Early advice is cheaper than corrections. Comment with a scenario you are debating, and the community will share what they learned the hard way.