Find out about tax requirements for your business

Besides competitive business tax rates, Scotland offers incentives for research and development. Find out about tax requirements for your business.

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Along with competitive tax rates, including the lowest business tax of any G7 country, Scotland also offers tax incentives for research and development (R&D).

Scottish taxation is mostly governed by UK law and administered by HM Revenue and Customs (HMRC). But local taxes, like business rates, are controlled by the Scottish Government and administered by local authorities.

As a business in Scotland, you must notify HMRC about setting up your business within three months of starting trading.

To ensure your business develops and avoids penalties, it’s important you understand the way profits are taxed and consider:

  • Corporate tax, property tax and business rates
  • Value Added Tax (VAT)
  • Tax incentives for R&D

Tax on imports

Imports into the UK (and other EU countries) from non-EU countries will have an import duty charge to pay on goods but not services.