Entrepreneur on laptop in park laughing on the phone | What is a business tax account?

Contents

  1. 1. What is a business tax account?
  2. 2. Why do I need a business tax account?
  3. 3. How to set up a business tax account
  4. 4. How do I add services to my business tax account?
  5. 5. Are business tax accounts safe to use?
  6. 6. When is my tax due?

What is a business tax account?

August 13, 2021
This article was updated 24th February 2023.Whether you're an established business or have only just started your limited company, it's important to know when your financial deadlines are, which taxes you have to pay and how you can pay them to HM Revenue and Customs (HMRC)To simplify staying on top of your taxes, HMRC has introduced business tax accounts to help business owners quickly access tax information and review any communications.Companies of any size can set up a business tax account and can be made accessible to more than one member of the team, should multiple people be involved in managing the company's taxes.In this article, we'll talk you through the benefits of setting up a business tax account, how to register for HMRC online services and where you can keep track of your taxes. 

What is a business tax account?

A business tax account is an online tax account that puts all your business taxes together in one place.In doing so, a business tax account allows you to keep better track of your company's finances and taxes, by making it easy to view a summary of your company's tax position, securely pay your taxes and receive any messages from HMRC.Your business tax summary will include:
    Self AssessmentVATCorporate TaxPAYEOver 40 other business taxes
An HMRC business tax account is separated into 2 areas:
    A top menu that allows you to manage your account, view secure messages and get helpA business tax summary where you can complete tasks relating to tax payments and tax returns
In your business tax summary, you can access the online tax services you need with your Government Gateway ID.If you're pressed for time, check out our overview of your business tax account and business tax summary in the video below.

Who can use a business tax account?

Business tax accounts are available for limited companies, sole traders, partnerships – anyone who's in running a business! To use these HMRC's online services, head over to your business tax summary with your Government Gateway user ID and password to sign in.

What can I use my business account for?

You can use your HMRC business tax account yo:
    Check your tax position for the taxes you've registered forMake returns and paymentsAdd or remove a tax, duty or schemeGive a team member access to a tax, duty or schemeCheck secure messages from HMRCAdd, view or change a tax agentGet help with your taxesUpdate your contact details, Government Gateway user ID and security preferencesSign up for paperless notifications

Why do I need a business tax account?

There are benefits to having a business tax account, such as:
    Easy access to your business tax summaryAbility to send and receive secure messages from HMRCReduced total lost revenue to HMRCAbility to edit account details

Easy access to business tax summary

As more and more businesses turn to online banking, HMRC are evolving their systems to better aid companies.

Ability to send and receive secure messages from HMRC

You can view secure messages from HMRC and receive help via a live web chat feature.

Reduced total lost revenue to HMRC

HMRC reported that £8.5 billion was lost in revenue from 2018-19 due to avoidable mistakes made by taxpayers. Business tax accounts can help minimise these losses by clearly laying out what you as a business need to pay throughout the year.

Ability to edit account details

You can sign up for paperless notifications, view and change your account details, such as your company email, Government Gateway ID and address, and update your security preferences.There's also an option to deregister a tax duty or scheme if you no longer need to make returns. Your tax data will remain in the tax system, even if you have removed it from your business tax account.

How to set up a business tax account

You can set up a business tax account by following these simple steps:
    Register for a business tax, such as Self Assessment, VAT or Corporation Tax. You may get a tax reference for your tax data.Set up a Government Gateway user ID to get your organisation online.Add the tax you want to get access to.Enter Activation Code, otherwise known as an Activation PIN, which you'll receive in the post within 10 days
To get started, follow this link to the HMRC website.

If you've previously filed a tax return you'll already have a business tax account, which you can access through the HMRC online services homepage.

Once you've set up your business tax account, you can add or cancel taxes whenever you need. For example, if you're looking to register for Corporation Tax, you can set this up through your online account and an activation code will be sent out in the post up to 10 days after registering for this service.

HMRC online services

HMRC online services are set to replace Government Gateway Access, with plans for HMRC to phase this service out entirely.From these online services, you'll can access your business tax account, where you can file tax returns and submit applications for other taxes.As of 15th June 2021, HMRC updated all business accounts to have Multifactor Authentication (MFA). This feature offers secure logins via access codes that are sent out to linked devices.HMRC online services offer a webchat, where you can speak to an advisor about any technical issues. However, this service can only be used to discuss PAYE, Self Assessment, VAT, tax credits and child benefits, and you might find yourself waiting a while for a response.You can email HMRC with your tax or account enquiries, although it can take a couple of weeks to receive a reply. With this in mind, you should keep your own copy of all correspondence with HMRC for future reference, such as the name of the advisor you spoke to, and the date and time of the conversation. 
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How do I add services to my business tax account?

To add a tax to your business tax account, select either:
    'Get online access to a tax, duty or scheme' from the home page'Add a tax, duty or scheme to your account' from the top 'manage account' menu
To add services to your business tax account, first choose which tax you want to add from the list of options. You'll then be asked to input your Unique Tax Reference (UTR) into the box provided. You should be able to find this 10-digit number on a tax return or statement.

.If you want to remove a tax, duty or scheme, you can use your business tax account to either:
    Deregister, as you'll no longer need to make returnsStop access, meaning you'll no longer see information about the tax you're removing from your business tax account
Keep in mind that if you only stop access, you'll still need to file your tax returns. You'll also find that while you cannot access your tax data, you won't lose it. Instead, your data will be held in the relevant tax system even if you no longer have it in your business tax account.

Are business tax accounts safe to use?

Business tax accounts are safe to use, as long as you adhere to their security processes and keep your sign in details secure.HMRC uses high-security firewall protection to protect its systems and your data. Any sensitive data that you submit on an HMRC webpage is protected by an SSL (Secure Sockets Layer). This encrypts your data so that hackers cannot hijack your information.  Despite these security implements, scammers might still try to take advantage of you. If you suspect that a message you have received isn't really from HMRC, forward their email address to [email protected] for HMRC to investigate. Do not correspond if you are even the slightest bit unsure about a person's intentions or identity. A common scam is receiving a text claiming to be sent on behalf of HMRC, stating that you are eligible for a tax refund. Never send your bank or personal details via text. You should instead forward the message to HMRC via 60599. You should also contact HMRC immediately if you think you have found a security vulnerability in your account or other HMRC service. 

When is my tax due?

While you can use your business tax account to tell when the key deadlines for filing your tax returns are, it doesn't hurt to know when your taxes are due.While some taxes are due on the same date every year, some tax due dates vary depending on when the end of your financial year is.
Type of taxDue date
Company tax return12 months after the end of your accounting period
Corporation Tax payment9 months and 1 day after the end of your accounting period
Self Assessment tax return filing31st January after the end of the relevant tax year
Income Tax payment on account 131st July of the relevant tax year
Income Tax payment on account 231st January after the end of the relevant tax year
Annual accounts9 months after the end of your company's financial year
PAYE if you pay monthly22nd of the next month if you pay monthly
PAYE if you pay quarterly22nd after the end of the quarter if you pay quarterly
VAT return and VAT paymentWithin 1 month and 7 days of the end of the relevant period

Tax cards

Your business tax account tells you each of the taxes you need to pay, with each registered tax appearing as a tax card in your business account summary.These tax cards will show you your tax reference numbers, any outstanding payments you have, and any returns you need to complete.You should also be able to see how much HMRC owes you in repayment, listing payments that you have already made and any direct debit payment plans you have standing.Although your business tax account should help you keep on top of payments, you may still find yourself falling behind. If so, your account will clearly state if you have any late payments or late filing penalties.
Rachel Cameron-Potter
Rachel Cameron-PotterContent Marketer

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