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Starting a Business - Sole Trader

alasdair dodds - Thursday, September 02, 2010

Tel: 01245 477222
www.acplusuk.com

STARTING A BUSINESS – SOLE TRADER
If starting a business you will need to register with HMRC and complete a Tax return at the end of each Tax year 05th April.
You can be employed and self employed at the same time but you will still need to complete a Tax return.
Employment income and business income is then entered onto your tax return.
TO REGISTER WITH HMRC Tel  0845 915 4515 do so within 3 months of commencing business to avoid a £100 penalty. Info needed:  National Insurance number, DOB, address, trading name
What will happen then: you will receive a letter from HMRC advising you of your UTR (unique Tax reference number) , Keep this safe you will need it to file your Tax return. You will also receive a Tax return to complete if you do not wish to file online. (see below)

1. Set up a business bank account. – This is to keep the business and personal money separate

2. Manage your paperwork – very important to have available if HMRC wants to look at your records.

3. Folder given is to explain how to manage your paperwork.  Keep /obtain receipts invoices for all purchases.   Keep a copy of all sales that you make. Create a spreadsheet or keep a receipt book

4. Each month tie up the bank statement with the income and expenses so you know where you are.

5. If not employing an accountant keep a spreadsheet or written accounting record of your income and expenses.

6. Insurance: Liability or Professional Indemnity insurance – do you need it?  Check it out

7. Income protection insurance – what happens if you are ill or have an accident how will you pay your bills.
Check the price of insurance

8. Set up to pay National Insurance Class 2 Voluntary contributions to keep your state pension up to date. Currently at £2.40 pw  (download form from the internet called CA5601 Class 2 voluntary contributions.)
        Contact us at Accounting Plus UK Ltd for Accountancy and Tax advice. We are here to help.

 

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