Corporate Taxation: Company VAT Registration and related Businesses Legislations

Taxation is a financial levy imposed on legal entities, or individuals, by the government of the country where they operate or reside. In the UK, the HMRC is the governing body for taxation. This setup enforces and ensures the strict regulations surrounding taxation are being followed, as failure to pay tax is punishable by law. There are many forms of taxation that the government stresses companies should pay for or legally pay attention to including company VAT registration.


This is a form of taxation that only affects businesses that import or export goods from companies operating on foreign grounds. Tariffs are used as a measure of controlling trade across borders to encourage domestic and indigenous industrial efficiency. For instance, if established multinational companies started importing raw materials from foreign countries only, the domestic raw material industries would suffer majorly. Therefore, tariffs are simply a way of limiting, if not deterring, companies from excessive foreign trading.

Windfall Tax

The Labour government introduced windfall taxing in 1997, as it was discussed that many private organisations had been unfairly benefiting from their helpless customers. Windfall tax is essentially a form of taxing where organisations are ordered to pay a certain percentage of their annual gains, especially following an unexpected increase in revenue.

Withholding Tax

Also known as income tax, this is a form of money that the government deducts from each individual’s salary before payments are made. Each company is instructed to deduct this amount of money from each employee at monthly-fixed rates depending on how much they earn.

Value Added Tax

This form of taxation is imposed mainly on consumption that companies like us at eformations can help with. Value Added Tax (VAT) applies to both the product seller and buyer. From the buyer’s perspective, it is a levy added to the purchase price, and from the seller’s point of view it is essentially a tax for adding value to the product before selling it. For companies, this is a complex form of taxation, as the government enforces corporate VAT registration to ensure each organisation is paying this levy.

As mentioned earlier, failure to comply with the taxation legislations can result in damaging consequences; such as hefty penalty fines. It is common that companies will struggle to keep up with these and the many other regulations surrounding them, and this is why companies like us at eformations are available to offer assistance with compliance tasks like company VAT registration. We are a fully established organisation with a team of employees who have the necessary qualifications to guide you through a fully compliant registration procedure. If need to make an enquiry regarding our services, please contact us today.

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