Self Assessment Tax Returns

25 Apr 2019

Late Filing of Returns Over recent years some people, both accountants and their clients, have...

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Rental and Let Properties

25 Apr 2019

Let / Rental Properties Many properties have been purchased, especially in the property boom,...

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Starting a Business

25 Apr 2019

Starting up in business This can be a very daunting time and whereas you generally have a great...

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Starting up in business

This can be a very daunting time and whereas you generally have a great deal of knowledge in the area of work you business is going to be in it is often the case that you have no experience in actually running the business side of it – the bookkeeping, marketing, personnel management etc. Although you may not be aware of it there are a lot of considerations that need to be made before you even start trading.....

Business Structure – Should you trade as a sole trader, partnership, limited liability partnership (LLPs) or limited company. Being a sole trader is the most flexible structure but some customers will only use limited companies as suppliers. A limited company may mean that you are more protected should the business be unsuccessful, but more accounts have to be filed for public record and business loans often require personal guarantees of the directors anyway. Each structure has pros and cons and you need to decide what is right for you before you start trading. Indeed if you decide to go the limited company or LLP route this can not be registered instantaneously!

VAT Registration – Although many businesses fall under the registration threshold and are therefore not required to register for VAT it can sometimes be beneficial to voluntarily register. If you do register your business then you have to decide if you wish to you use a special scheme for accounting for VAT such as the flat rate scheme.

Record Keeping – Although the rules are more stringent for limited companies and LLPs accurate record keeping needs to be maintained regardless of your business structure. You may decide to use bookkeeping software to assist you or simply keep all the sales and purchases receipts and invoices in one place and give them to your accountant once a year!

Business Registration – Assuming you decide to act as a sole trader It is a requirement to register your business with H M Revenue & Customs within 3 months of starting to trade and there are penalties if this is not done. This should enable them to issue you with a unique tax reference (UTR) and issue annual tax returns for completion. If, on the other hand, a limited company is the preferred option issues such as shareholdings and directorships need to be considered before forming the company.

Year End – The date to which your annual accounts are made up to is often 5 April or 31 March to coincide with the tax year end, however there are sometimes reasons why another date may be more appropriate for you.

As you can see this is only the beginning of the issues that need to be considered; it is often like a spider diagram where the answer to one question leads to the need to consider further issues that would not have been relevant if another option had been chosen. We offer an initial consultation that is free of charge during which we can discuss many of these issues. If this would help please email us at .