The allure of becoming your own boss and being in control of your daily work life attracts many as we enter a new year into taking the plunge and starting a new business. Start up businesses are becoming more common as people strive to achieve their aspirations via their own business, rather than working for others with some 4000 limited companies being incorporated every week here in the UK.
In reality there are lots of considerations when starting your own business to ensure that you operate effectively and efficiently whilst complying with legislation.
For many the first decision will be how will the business trade? For many the advantages of trading through a limited company are quite clear, the formation of a limited company is fairly straight forward, quick and cost effective. If you have a business which is likely to make losses in the first few years of trading then there could be an advantage in initially trading as a sole trader to take advantage of tax losses.
When running a limited company it is important to remember that compliance work in terms of reporting to Companies House and HMRC can be more onerous than for the non-incorporated business, although this must be balanced with the benefit of trading with limited liability.
Whichever route you chose to trade through a few things not to forget:-
- HMRC will need to be informed of your new business and any self assessment registrations completed.
- PAYE and Real time information (RTI) are now mandatory for employers.
- VAT registration and legislation will need to be considered.
- HMRC business records checks – there is an increasing focus from HMRC on the records which businesses maintain. Good business records must be maintained from day one!
All this sounds quite scary but with right advice and support starting your own business can be an exciting as well as challenging time.
If you are considering embarking on your own adventure into the world of business then please do not hesitate to get in contact.