In many respects online businesses are similar to physical ones. The need for registration, invoicing, collecting and keeping invoices and, of course, paying tax remains. There are some difference in the treatment of the IVA though.
The RE Tax System is a simplified IVA tax system for retailers that aims to reduce the amount of paperwork. It is compulsory for retailer businesses run by self employed individuals. How does it work? Do you need to apply the RE system to any of your clients?
You might have heard that a limited company pays less tax than a sole trader when incomes exceed a given threshold. On the other hand, it has a greater cost to incorporate and maintain. When is it worth having a company? – Interactive Tool.