Top 5 tips for start-up businesses

16th November 2018

Businesses are born in many ways but there are some common considerations for all start-ups.

Legal form

Consideration needs to be given as to the how you wish to set up and structure your business. If you are going it alone perhaps a sole trader could be the best route or, if there is more than one person involved, a partnership. Alternatively you may wish to form a limited company which is a separate legal entity to the business owner so may be desirable in some circumstances. There are pros and cons for each type of entity including both commercial and taxation considerations so it is worth seeking professional advice early on.

Funding requirements

All businesses will need working capital to fund the day to day operations together with any start up costs and this would usually start with some sort of cash injection. This may be a bank facility, some sort of other loan or even a grant. There may be tax implications to consider depending on the type and nature of the ‘debt’. Another consideration is how best to fund any capital expenditure required.

Compliance

This is of importance to all businesses and will vary depending on type and sector. All businesses however will need to register with H M Revenue & Customs within the appropriate timescale. VAT registration will also need to be considered if the business will make ‘taxable supplies’ in the next 12 months that exceed the VAT registration threshold, currently £85,000.

Employees

If the business is going to employ people, including salaried directors in a limited company, it will need to register with HM Revenue & Customs for a PAYE scheme. Regulations surrounding work place pensions will also need to be adhered to as noncompliance can result in significant financial penalties.

Record Keeping

All businesses will need to maintain adequate accounting records and, depending on turnover levels, these may need to be held in a digital form from as early as April 2019. Choosing the right accounting package is therefore important as getting it set up right from the beginning will almost certainly save time in the long run.

There is much to think about when starting a business and a local accountancy firm will be able to guide you through these having seen it many times before.

Want to know more?

Attend our upcoming start-up seminars for free advice and support – click here for more information and to book your place.



 
Other items in Blogs
 
Nick Edgley
3rd July 2020 31 July: Is full amount of income tax payable?

Many taxpayers who are required to file a self-assessment tax return to HM Revenue & Customs should now be preparing for their next half-yearly tax payment which is due by 31st July. The amount payable is the second payment-on-account for the 2019/20 tax year and is automatically calculated as half of the total tax liability…

Read More »

Jaimie King
2nd July 2020 Covid Charity update

Many of the charities we support have been concerned about the impact of Coronavirus, and have understandably had many questions with regards to support and how to manage the charity.   Below is some of the latest government guidance (as of 26th June 2020) with regards to some of the most frequently asked questions that…

Read More »

James Cater
30th June 2020 New electrical safety regulations for all landlords

While the Coronavirus pandemic holds our attention it is easy to overlook other changes taking place in its shadow. From 1 June 2020 new electrical safety regulations have come into force which apply to all new lettings of dwellings; from 1 July 2020 (tomorrow!) the regulations will be extended to cover all existing lettings of…

Read More »

Katharine Bebbington
29th June 2020 Companies House automatically extend year end

On 25 June 2020, the Corporate Insolvency and Governance Act 2020 received Royal assent.  As a result, Companies House have announced that for eligible companies they will automatically extend the filing deadline for 3 months because of Covid-19.  These are for companies with a filing deadline between 26 March 2020 and 29 September 2020.  This…

Read More »

Ernesta Petkeviciute
29th June 2020 Guidance on pension scheme financial reports and audit featuring Covid-19

A joint guidance has been published by ICAS, ICAEW and PRAG on pension scheme financial reports and audit, with a large focus on Covid-19 matters.   The impact of Covid-19 pandemic on the control environment of pension schemes is explored, to help auditors navigate the additional challenges they are likely to experience and help them…

Read More »

Paul Jefferson
26th June 2020 Delaying Import duty and VAT

HMRC have implemented measures to assist businesses that are registered importers who pay VAT and Duty at the time of import and are facing financial difficulties as a direct result of Coronavirus.   What to do if you’re a Duty deferment account holder   You can contact HMRC for approval to enter into an extended…

Read More »