Sigma Accounting:
Sigma Accounting specialises in providing accountancy and business advisory services to owner managed businesses based on the Isle of Man.
For an informal discussion about how we can help you with the accountancy requirements of your business please contact us.
Copyright Sigma Accounting ©2013 All rights reserved
SIGMA accounting
Sigma Accounting is registered in the Isle of Man (number 023280B)
and is a member of the ICAEW Practice Assurance Scheme.
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Paying tax:
Sole traders
The profits from a sole traders business are taxed via their personal tax return. The return is issued shortly after the end of the fiscal year (5th April) and must be submitted within six months; the latest date for submission without suffering penalties is 6th October.
The tax assessed from the return must be paid to the Treasury on a ‘payment on account’ basis; effectively you pay your tax one year in advance of when it is due, the normal payment on account is 105% of your assessment. Be aware that in your first year as a sole trader you will be required to pay both your assessment and a further payment on account of 105% of your assessment, both payments are due on or before 6th January.
The Isle of man Treasury produce a guide to self employment which is available here, and a guide to payments on account which is available here.
Limited companies
Even though most companies on the Isle of Man effectively pay no tax (in reality they are taxed, but at 0%) all companies must complete and file a tax return. Some companies are still taxed at 10%; those which derive income from either banking or land and property.
Corporate entities are taxed under what is called the ‘Pay and file’ system, the company is not taxed on the profits it makes in a fiscal (tax) year but on the profits it makes in an accounting period. An accounting period can end on any date chosen by the company, for a new company the default date is 12 months from incorporation. The company must file its tax return and pay any tax due within a period of 12 months and 1 day from the end of the accounting period.
The Isle of man Treasury produce a guide to corporate income tax which is available here.
| Start up advice |
| Bookkeeping |
| Accounting |
| VAT |
| Tax |
| Starting your business |
| Running your business |
| As your business grows |
| Sole trader or Limited company |
| Choosing and registering your business name |
| Business banking |
| Deciding on VAT registration |
| How an accountant can help your business |
| Choosing an accountant |
| Keeping records |
| Employing staff |
| VAT schemes |
| Filing statutory documents |
| Paying tax |
| Changing your accountant |
| Cash accounting scheme |
| Annual accounting scheme |
| Flat rate scheme |
| Management accounts |
| Budgets and forecasts |
| Investment appraisal |