Business start ups
Starting your own business is one of the most fulfilling and exciting things you can do in life, but naturally it can also be risky. A whole series of crucial decisions will need to be made in the start-up phase, which could affect the prospects of success. We can provide expert, targeted advice and help you avoid the common pitfalls. You’ll need to consider such things as: the type of business and its attributes; your target market and competition; profit potential and how you will extract those profits; the rate of business growth; and the impact on your personal life. You should also think about how you plan to exit the business when the time comes.
Business plans
Your business plan should include: the business structure that best meets your needs (such as: sole trader, partnership, limited liability partnership or limited company); your intended funding sources; tax-efficient borrowings; whether a PAYE scheme is necessary; and whether the business should be VAT registered.
We can advise on these important decisions, and help you to make the appropriate registrations correctly. We can help with cash flow forecasts, enabling you to spot potential cash shortfalls, and offer regular updates to enable you to monitor your business’s performance.
Your business structure
Deciding on the business structure that best suits your needs isn’t always straightforward. There are pros and cons for each trading structure, and each has implications for control, perception, support and costs.
For example, careful consideration is needed regarding whether or not to retain personal ownership of any freehold property on incorporation. We can help you to decide on the best structure for your business.
Choosing a year end
It’s sensible to choose a year end that suits your business. Is yours a seasonal business? Is there a time of year when it will be more convenient to close off your accounting records, ready for us? What time of year would be best for stock-taking? From a tax perspective, choosing a year end early in the tax year for an unincorporated business usually means that an increase in profits is more slowly reflected in an increased tax bill, and over time the delay between earning profits and paying the tax can create a source of working capital for the business. Conversely, a decrease in profits will more slowly result in a lower tax bill. Speak to us for advice about choosing your year end.
Registering with HMRC
While notifying HMRC of your employment status may seem low on your agenda in those crucial first weeks and months, if you are leaving employment and going it alone with your own business, it is important to inform HMRC of your new self-employed status as soon as possible. If and when you take on employees (and for this purpose you will most likely be an employee of your limited company, if you incorporate) you need to register for and set up a PAYE scheme and accept all the responsibilities and obligations that go with it, including compliance with Real Time Information reporting. You will also have to comply with the pensions auto-enrolment obligations. Exemptions apply to director only companies so do get in touch for advice in this area.
Please talk to us as soon as you envisage having employees so we can help you set up a PAYE scheme and comply with your payroll obligations or take on the task for you.
Start a business – action plans
Starting a business – action plan
Prepare a robust business plan
Ensure that you have access to suitable funding
Check your right to use your chosen trading name
Choose the right business structure
Register with HMRC
Register for VAT
Register your business name
Trade and professional registrations
Choose your year end
Plan to reduce your tax liability
Develop your branding
Involve the family
Plan to avoid fines and penalties