Starting a business can be stressful enough without having to worry about, tax, National insurance, VAT, Health & Safety, audited accounts...or as it is commonly known 'Red Tape'.
However, not every business needs to have all of these areas investigated before commencing business. For example, a business does not need to register for VAT if it has a turnover of less than £56,000.
This article will help you identify the areas that you will need to understand when starting and running a small business. The article will give you general start-up information and direct you to relevant Accountants details.
The Inland Revenue have a very informative leaflet: PSE 1 - Thinking of Working for Yourself?:
If you are self-employed, you need to register with the Inland Revenue. You can do this through two ways:
Complete the Inland Revenue On-line Form
and post it to them:
The Structure of Your Business
Special rules are enforced if you’re working in the construction industry, or if your business is a:
If you are unsure whether to form a limited company or be a sole trader, visit your local Accountant in Cornwall to help you decide:
Income Tax & National Insurance
Income tax and National Insurance rates vary between employees depending on their income and personal circumstances (i.e. marriage, children, disability, etc).
These rates usually change during the yearly budget so it is important that you keep note of any changes.
For more information, visit local accountant to discuss:
Value Added Tax (VAT)
Each year the Government sets a figure - should it be the same as the previous year or different - which if met by your company, you need to register for VAT.
If your business satisfies any of the following statements, you need to register for VAT:
If your taxable turnover in the previous year exceeded £56,000
If your taxable turnover in the next 30 days is expected to exceed £56,000
Furthermore, if you are currently trading - or plan to trade - with suppliers in EU countries, you are also required to register for VAT within 30 days.
There are many other issues to deal with including Health & Safety, the environment, further taxes on particular companies, fire precautions,
Employee Rights and much more.