Starting Up In Business
There are a great many things to consider when
starting up in business, as there are several different roads to
take and just as many pitfalls in each one. It is important to determine
what your status is when starting; whether employed or self-employed,
you need to be perfectly legal and ensure that you do not mislead
the Inland Revenue or Companies House. For more information on abiding
by the rules of the Inland Revenue, you can check out their specially-made
leaflets for new businesses, or alternatively, contact Academy Accounting
Ltd, who have first-hand experience in helping to setup new companies
and guide them on the right road to success.
If self-employed, you must register with the Inland
Revenue as being self-employed within three months of starting up,
beginning from the last day of the month in which self-employment
began. If this is not done, an immediate penalty of £100 will
be charged against you. Also, if self-employed, you are liable for
keeping track of and paying your own tax and National Insurance
Contributions, both of which are based upon profits of the previous
tax year. When self-employed, you must pay Class 2 National Insurance
Contributions as soon as you start, in addition to any necessary
Class 4 National Insurance Contributions. For more information,
see our section on National Insurance. After
the first year in business is over, the Inland Revenue require the
majority of your income tax and Class 4 National Insurance Contributions
to be paid in advance, and this can be a difficult thing to keep
on top of.
As well as income tax and National Insurance Contributions, you
will most likely have to register for and charge Value Added Tax
(VAT). This is indeed the case if:
- Your taxable turnover reaches a specific limit;
- You have taken over a business; or
- You bring in goods from other EU countries.
Depending on the nature of your business, you may also be lliable
for other forms of taxes. Contact the Inland Revenue today to find
out more, or call us for a jargon-free explanation of what is expected
of you.
In all of these cases, proper record-keeping is
required by law, so that accounts submitted to Companies
House accurately reflect what business you have done, and so that
the Inland Revenue are paid the correct amount of tax and National
Insurance Contributions. Academy Accounting Ltd have helped to setup
many newly-formed companies over the years so have first-hand experience
in knowing what is required of these new starts. For a small and
very reasonable fee, we can help you to get your business off the
ground. Don't delay - call us on 0141 891 5999 or e-mail us at enquiry@academyaccounting.co.uk.
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