Setting Up Your Own Business? Here’s a Helping Hand to Get Started

| 20-07-2018

Starting your own business is an incredibly exciting time. You’re going to be fulfilling a lifetime’s dream and doing something you’re passionate about. But in all the excitement it’s easy to forget there is a lot of important admin that needs to be done when you start a business. In many cases, it’s admin that is legally required so it’s essential – not optional.

 

Here are a few of the legal and HMRC requirements you need to think about when you first set up your business. Many of the answers you need can be found on the government website, gov.uk, and this blog has a number of links to point you in the right direction.

 

The site is a mine of useful information for business owners like you. There are videos, webinars, online courses and it contains plenty of guidance so you can be confident your business is compliant with all the regulations from day one. All the information on the site is free, regularly updated and you can find a complete list of resources at https://www.gov.uk/government/collections/hmrc-webinars-email-alerts-and-videos.

 

Setting yourself up as self-employed

When you’re employed, things like tax and National Insurance are taken care of by your employer. When you’re self-employed, you need to take responsibility for all these yourself.

 

In the first instance you need to:

  • Tell HMRC you’re self-employed
  • Find out what National Insurance you’re required to pay

 

At this stage, it’s sensible to think about the records you’ll need to keep and what HMRC will need to see – it will save you a lot of pain later on. It’s also wise to think about how you’re going to budget for your tax bills now so they don’t come as a nasty shock later.

 

For guidance on all this and more go to www.gov.uk/guidance/help-and-support-if-youre-self-employed#setting-up-your-business.

 

Completing your first tax return

Your first self-assessment tax return is a momentous occasion in your business. It’s also likely to be the most daunting tax return you’ll ever make.

 

The gov.uk website has a good section on self-assessment at https://www.gov.uk/guidance/help-and-support-if-youre-self-employed#what-to-do-if-youre-self-employed. It has information such as how to register for self-assessment and the deadlines you need to know about. You’ll also find guidance on the tricky issue of managing expenses.

 

Setting up a limited company

If you’re setting up a limited company and becoming a director of your business, there are more things you need to be aware of.

 

The information on the gov.uk website at https://www.gov.uk/guidance/help-and-support-for-company-directors#support-with-research-and-development will walk you through details such as:

 

  • Registering your company
  • Meeting your responsibilities as a company director
  • Income Tax and National Insurance for company directors
  • Getting tax relief on research and development activities

 

Taking on your first employee

Taking on your first employee is a significant step on your business journey and there are lots of things to know about. The section of the gov.uk website at https://www.gov.uk/guidance/help-and-support-for-employing-people is a good place to start. It covers:

 

  • Registering with HMRC
  • Taking on your first employee
  • Running payroll
  • Paying tax and National Insurance to HMRC

 

It also contains a wealth of other information to help you as your number of employees grows such as health and safety guidance from the Health and Safety Executive.

 

Congratulations!

It’s a momentous decision to set up your own business, although it’s safe to say that the hard work starts here. But by using HMRC’s guidance you can make sure you’re not falling foul of any legislation or making things any harder than they need to be.

 

You’ll also find we offer lots of valuable advice for business owners such as in this eBook on VAT and HMRC compliance best practices.

 

So, here’s to your future as a successful, happy – and compliant – business owner, and if you ever need friendly advice along the way on managing expenses and invoices, give us a call on 01628 645 100.