VAT is a tax on most goods and services, and UK businesses must register and charge it if their VAT-taxable turnover exceeds £90,000 in a 12-month period.

A limited company is a separate legal entity from its owners, with its own tax position, limited liability and a formal structure for running a UK business.

A sole trader is a self-employed individual where the business and the owner are the same legal entity, with profits taxed as personal income through Self Assessment.

Corporation Tax is a tax on company profits in the UK, charged at 25% for most companies, with reliefs and thresholds depending on profit levels.

Without tax planning, business owners often face cash flow pressure, missed allowances and unexpected tax bills that limit confidence and long-term financial control.

UK businesses can claim expenses that are incurred wholly and exclusively for business purposes, with eligibility depending on use, evidence and HMRC rules.

Directors can pay themselves through salary, dividends or a mix of both. The right approach depends on profit, affordability and tax rules that govern legal company withdrawals.

The Bottom Line: Your costs are going up, and there's less tax relief to help soften the blow. But we’re here to help.