“I pay my personal tax… I pay corporation tax…”
Sound familiar?

When we talk to business owners about tax, most think they’ve ticked the box. But in reality, there are several other taxes that often get overlooked, and not planning for them can cause major cashflow headaches.

Let’s break it down simply and help you stay ahead.

In this clip from our Business Success Conversation, we explain the full tax picture (including VAT, PAYE, dividends, and Payment on Account) and how to plan ahead with savings pots to avoid nasty surprises.

The Taxes Most Business Owners Forget

If you’re running a limited company, you will be hit by:

• Corporation Tax – on your company profits
• VAT (Value Added Tax) – if you’re VAT-registered
• PAYE/NIC – if you have employees
• Dividend Tax – if you’re paying yourself dividends
• Personal Tax – from your Self Assessment

But what about self-employed or partnership businesses?

You might not pay corporation tax, but you’re still going to be liable for:

• Income Tax via Self Assessment
• Class 2 and Class 4 NICs
• Payment on Account twice a year!

That last one often surprises people. Payment on Account means you're not paying just once a year, you’re paying in advance based on expected profits.

Why You Need to Plan for Each Tax Separately

You can’t lump all these taxes together and hope for the best. Too many business owners run into cash problems because they:

• Underestimate their tax bill
• Forget to plan for VAT and PAYE
• Confuse personal tax with company tax
• Don’t set money aside as they go

Use Tax Savings Pots (and Why Online Banks Help)

One of the best habits we recommend: create separate tax pots.

Even better, many online business banks (like Starling or Monzo Business) now allow sub-savings pots.

That means you can have:

• A VAT pot
• A PAYE pot
• A Corporation Tax pot
• A Personal Tax pot

All separated out, so you’re never caught short.

Profit vs Accounting Profit; Know the Difference

You can’t plan for tax using just your profit and loss report. Why?

Because accounting profit isn’t the same as taxable profit. Some expenses are disallowed. Some income is treated differently. And if you're drawing dividends, it's not as tax-free as it used to be.

The solution? Keep your records up-to-date, track your real profit, and forecast your tax bill based on that.

Whether You’re a Sole Trader, LLP or Limited Company; Plan Ahead

Regardless of your structure, the taxman is always coming and often, twice a year. That’s why forecasting your tax payments is just as critical as forecasting your cashflow.

Get the Business You Want

You didn’t start your business to get caught out by surprise tax bills. Whether it’s Corporation Tax, VAT, or Payment on Account, your success depends on staying one step ahead. We’ll help you plan, save, and avoid the panic.

Want support from experts who know your whole tax picture? Get in touch with us today.