Services: Business Start Up
The majority of people look to set up a business because they have a good idea or they have a trade they have become skilled in. They may not be experts in the financial issues of running a business in fact these factors may seem overwhelming but why should that hold them back? We can help develop a business proposition into a successful business by offering the following services:
Deciding on the best structure (Limited, Self Employed or Partnership - please see details below)
Preparing business plans to help proceed, attract investors or obtain finance
Registering the business
Help with setting up systems or methods to record the financials of the business
We can offer further guidance on specialist areas such as VAT registration and will provide you with all the services we think you require to take the pressure off so you can concentrate on building the business rather than its administration. The main types of business to choose from include:
Limited Company (Incorporation)
A limited company has its own legal identity and is limited by its shares. This means the shareholders (business owners) have limited liability and can only lose the contributions which they have made or invested in the company. Owners employ directors or in most cases appoint themselves (owner-managed businesses) to run the company.
Directors of UK limited companies are required to prepare company accounts that comply with the Companies Act and UK Generally Accepted Accountancy Principals. Company accounts are to be filed each year at Companies House and HMRC summarising the financial performance of the company for the period given and a snapshot of the financial position at that year end.
Limited companies pay corporation tax and pay their shareholders dividends which normally the shareholder will declare on their self assessment tax return and pay additional personal tax if the dividends are above a certain amount (the higher rate band). Shareholders do not pay national insurance on dividends so a limited company is normally regarded as the most tax efficient way to set up a business. However the administration is more demanding and the costs are much higher than sole trading so it may not be the most tax efficient structure. It is advisable to talk to us, as qualified accountants, before making the choice.
We can help produce the statutory accounts to be filed at both HMRC and Companies House and help report the correct profit to be taxed for all parties. Visit our 'Should You Form A Limited Company?' for more information.
A sole trader describes a business that is owned and controlled by one person that is not incorporated. Sole trader businesses do not have a separate legal existence from their owners. The owners are therefore personally liable for the business's debts and may have to pay for them out of their own pocket should the business fail.
Being self employed is the simplest way to get started in business as it requires the least disclosure with HMRC, although there are certain deadlines. Everyone who is self employed is legally obligated to complete a personal tax return and use the profit contained in their sole trader accounts to calculate their tax liability. A sole trader will generally pay income tax and national insurance.
There is less administrative burden as a sole trader as ultimately you are responsible for settling all debts personally and you don’t need to register with Companies House nor file Accounts there.
We can help with producing your sole trader accounts and prepare your self assessment, taking care of all your accounting business administration so you can concentrate on running the business.
A partnership is very similar to a sole trader business as essentially a partnership consists of a group of sole traders trading together with a set personal share of the business’s profits. A partnership has no separate legal identity so the partners also have a set share of the company’s debts.
Everyone who is in a partnership is legally obligated to complete a personal self assessment tax return and use their share of the profit contained in their partnership accounts to calculate their personal tax liability. A partner will generally pay income tax and national insurance.
There is less administrative burden in a partnership as ultimately you are responsible for settling all debts personally between you and you don’t need to register with Companies House nor file Accounts there.
We can help with producing your partnership accounts and prepare your self assessment tax return, taking care of all your accounting business administration so you can concentrate on running the business.
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