Regarding taxes, many business owners in the UK can feel overwhelmed. Understanding some taxation basics is essential to ensure you pay the right amount and stay compliant. Generally, businesses in the UK pay various taxes depending on their size and activities. The most common ones include corporation tax, income tax, National Insurance Contributions (NICs), VAT and PAYE. Corporation tax is the main tax paid by companies, and it's based on their net profits. Companies pay corporation tax on profits over £1,500 per year at a rate of 19%. For larger businesses with annual profits of more than £300,000, there is an additional rate of 26%. Income tax is the main tax individuals pay, collected through PAYE if employed. Self-employed individuals must pay income tax on their profits and any rental income at 20% for basic rate taxpayers, 40% for higher rate taxpayers and 45% for additional rate taxpayers.  Employees, self-employed individuals, and employers pay National Insurance Contributions (NICs). Employees pay NICs at 12% up to a certain earnings level and 2% on any amount over that threshold. Self-employed individuals must pay Class 2 NICs at a rate of £3 per week if their profits are more than £6,475 per year and Class 4 NICs at a rate of 9% for profits between £9,500 and £50,000. Employers must pay NICs at 13.8% up to certain earnings levels and 2% on any amount over that threshold. VAT is a tax on goods and services collected by businesses from their customers when selling goods or services at a standard or higher rate. The standard rate of VAT in the UK is 20%. Finally, businesses must also pay other taxes, such as business rates, stamp duty and capital gains tax, depending on their size and activities. Businesses should be aware of all applicable taxes to ensure they are compliant and up-to-date with their payments to HMRC. Whether you're a sole trader, a small business or a large corporation, it's essential to understand taxation basics to stay compliant and avoid costly mistakes. Taking the time to familiarise yourself with the tax laws that apply to your company can help you pay the right amount and ensure you don't face any unnecessary penalties.