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Thread: what taxes and rates for small business?

  1. #1
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    Default what taxes and rates for small business?

    We plan on opening an equestrian livery yard in the UK.
    Know lots about horses and nothing about business.
    Please can you tell us what taxes and rates we will have to pay?
    How are business rates worked out?
    What are the tax thresholds?
    We will buy a yard with living accommodation.
    In the beginning, we will not hire staff.
    If starting from a business from scratch, when viewing properties is it possible to work out how much the rates will be?
    If taking on an existing business, is it okay to ask the owner how much the business rates are.
    If taking on an existing business and we scale it down, will the rates be reduced.
    Thank you.
    Last edited by zaffy; 07-28-2019 at 04:38 PM. Reason: Did not put my location.

  2. #2
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    The taxes will vary based on the business format you chose. If you operate as a sole proprietorship, an LLC or an S-Corp you just pay the taxes at your personal tax rate. The only difference is taxes such as Social Security must be paid at a higher rate because you have to pay the employers share. Those are considered pass through forms of business and the taxes just flow through to your personal taxes. You can take distributions without them being taxable since you paid taxes when you earned the money.

    A C-Corp is taxed independently so the Corporation pays taxes at the corporate rate. Your taxes are paid based on your salary and there are no other taxes on corporate profits. If you take any distributions they are considered a dividend and are taxable on your personal return. Splitting the income can lead to a lower tax rate.

    This is a quick overview and there are a lot of things I am skipping over so you might want to consult and attorney or accountant.
    Ray Badger, Turbo Technologies, Inc.
    www.TurboTurf.com www.IceControlSprayers.com

  3. #3
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    Turboguy, Thank you so much but I fear I have wasted your time. I am based in the UK. I have now altered my profile.

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