Find out what records you should be keeping

introduction

This tool identifies the records you must keep as a business and assesses how well you are keeping them.
The tool works in two ways. If you are thinking of starting up, it will ask you a few simple questions about what you are doing before providing a list of the records you will need to keep. This option only takes a minute or two to complete.
If you are already running a business, it will establish the records you need to keep and then ask you a series of questions about what records you currently keep and how you maintain them, before giving you feedback and advice on any improvements you may need to make. This option may take between five and ten minutes to answer all questions depending on the size and nature of your business.
Go straight to the first question.
You can save your progress while using this tool. To do so, you will need to log in or register - then you can come back and check or change your responses at any time, and the tool will give you updated advice. Please ensure that before saving, you have answered all questions on the page you are working on.

Quick reference guide to rates, thresholds and fees

Introduction

Rates and thresholds, as well as rules and regulations, can alter annually with changes being announced in the Budget and usually implemented from the beginning of a tax year.
Over a year, a business owner has to make certain reports (returns) and payments to various government bodies. Some of these reports are made at the end of the tax year, some are made at the end of what is called an 'accounting period' while others are made quarterly or monthly.
Regardless of when a return or payment is made, you will need to ensure that you use the correct rate or allowance for the relevant tax year, or you may face a penalty.

Income tax rates and allowances

Income tax is payable on earnings from employment or self employment, or on other incomes such as from pensions, share dividends and interest on savings, if you employ others or if you are the director of your own limited company.
How much tax you pay or deduct from the wages or salary of your employees depends on the appropriate tax rate and tax band or via Self Assessment if you are self employed. Income tax is payable to HM Revenue & Customs (HMRC) through the PAYE (Pay As You Earn) system.

Tax rates and bands

Tax rate	Tax bands in 2010-11
Starting rate for savings: 10%	£0-£2,440
Basic rate: 20%	£0-£37,400
Higher rate: 40%	Over £37,401-£150,000
Additional higher rate: 50%	Over £150,000

The basic rate limit will be reduced in 2011-12 so that higher rate taxpayers do not benefit from the increased personal allowance that is being introduced in April 2011.
A tax allowance is the amount of tax-free income a person can earn in a year. Some people will be entitled to more than one allowance.

Income tax allowances

Type of allowance	Earnings for 2009-10 and 2010-11
Personal allowance	£6,475 (note: the personal allowance will be increased to £7,475 in 2011-12)
Income limit for personal allowance	£100,000 (not applicable before 6 April 2010)
Personal allowance (aged 65-74)	£9,490
Personal allowance (aged 75 and over)	£9,640
Income limited for age-related allowances	£22,900
Married couple's allowance for people born before 6 April 1935	£6,865
Married couple's allowance - aged 75 or over	£6,965
Minimum amount of married couple's allowance	£2,670
Blind person's allowance	£1,890

From the 2010-11 tax year the personal allowance reduces for those earning above £100,000. It is reduced by £1 for each £2 over £100,000 until the allowance reaches nil. This reduction applies irrespective of age. From 2010-11 personal allowance for people aged 65 to 74 and 75 and over can be reduced below the basic personal allowance where the income is above £100,000.
For information on paying tax for your employees via PAYE see our section on PAYE for employers.
If you're self-employed, you may need to know the allowances and rates you're entitled to when you complete your Self Assessment tax return. See our section on Self Assessment.