Starting up in business can be a daunting prospect, with budding entrepreneurs all too often left to fend for themselves. We will help you to cut through the red-tape.
Some of the ways we can help you get started:
Bring us your business ideas and we’ll help you to evaluate them in a constructive and realistic manner. Our approach is to support you from the very start, guiding you through the maze of accounting and tax regulatory requirements.
Our initial consultation is free. To discuss how we can help please contact us on 01332 202660.
Registered to carry out audit work by the Association of Chartered Certified Accountants - auditregister.org.uk 8011438
61 Friar Gate - Derby - DE1 1DJ
Starting a business ... more detail
It is the ambition of many people to run their own business. This factsheet cannot cater for every possibility and any decisions should be supported by professional advice.
Initial considerations - In order to make your business a success there are a number of key factors which should be considered:
In addition to these general considerations there are a number of more specific matters.
The business plan - this is the key to success and your plan should provide a thorough examination of the way in which the business will commence and develop. It should describe the business, product or service, market, mode of operation, capital requirements and projected financial results.
Business structure - there are three common types of business structure:
The appropriate structure will depend on a number of factors, including consideration of taxation implications, the legal entity, ownership and liability.
Business stationery - there are minimum requirements for the contents of business stationery, both paper and electronic, which will depend on the type of business structure.
Books and records - All businesses need to keep records. They can be maintained by hand or may be computerised but should contain details of payments, receipts, credit purchases and sales, assets and liabilities. If you are considering purchasing computer software to maintain your records, obtain professional advice.
Accounts - The books and records are used to produce the accounts. If the records are well kept it will be easier to put together the accounts. Accounts must be prepared for HMRC and if a company is formed there are strict legal requirements as to their layout. The accounts and company tax return must be submitted electronically to HMRC in a specific format (iXBRL). Presently Companies House do not require annual accounts to be submitted electronically in iXBRL format, however there is software available to cater for electronic filing if preferred.
Taxation - when starting in business, taxation aspects must be considered.
Employing others - for the business to get off the ground or to enable expansion, it may be necessary to employ staff. It is the employer’s responsibility to advise HMRC of the wages due to employees and to deduct income tax and national insurance and to account for student loan deductions under PAYE. The deductions must then be paid over to HMRC. Payroll records should be carefully maintained. Under Real Time Information an employer must advise HMRC of wages and deductions ‘on or before’ the time they are paid over to the employee. You will also need to be familiar with employment law.
Premises - there are many pitfalls to be avoided in choosing a property. Consideration should be given to the following:
Insurance - Each business has slightly different needs, and it’s important to make sure that the risks you face are covered. A good business insurance policy will cover your business in case anything goes wrong and can foot the bill for things like compensation payments and legal costs.
Pensions - putting money into a pension scheme can be a way of saving for retirement because of the favourable tax rules. The latest reforms, under Pensions Act 2008, have brought about a requirement on UK employers to automatically enrol all employees in a pension scheme and to make contributions to that scheme on their behalf. Enrolment may be either in to an occupational pension scheme or the National Employment Savings Trust (NEST). Compliance with the new regulations started from 2012 for the largest employers. The deadline for being compliant (an employer’s ‘staging date’) is determined by the number of people in their PAYE scheme and for smaller employers is between 2012 and 2018.
Whilst some generalisation can be made about starting up a business, it is always necessary to tailor the strategy to fit your situation. Any plan must take account of your circumstances and aspirations. Whilst business success can never be guaranteed, professional advice can help to avoid some of the problems which befall new businesses.
This information provides only an overview and no action should be taken without consulting the detailed legislation or seeking professional advice.