Getting Started in Business
Starting a New Business
Self Employment
Partnership
A Full Service for Limited Companies
Business Taxation: The Basics
Tax and National Insurance for Limited Companies
Value Added Tax (VAT)
Starting a New Business
WE CAN GUIDE YOU EFFORTLESSLY THROUGH THE RED TAPE OF STARTING A NEW BUSINESS
Starting up a new business is somewhat of a minefield and here are just a few of the questions you’ll need to answer before you even think about winning your first sale:
- Which legal format of business (limited company, partnership, sole trader, etc) is best?
- What legal responsibilities do you have?
- Which organizations do you need to inform?
Then as you grow there are all kinds of new challenges to face and the fact is that you can’t do it alone. You will need all sorts of advice to help you make the right decisions but the good news is that we have many of the answers.
Our experienced team can be on-hand for you when you start out and throughout to guide you at each important stage of your development. As we work with you, we can pass on our knowledge and set up systems for you so that you can take control of your business and control your costs.
We believe in pro-active advice based on having gained a thorough understanding beforehand of your business and your objectives. We want to make sure that we give you absolutely the right advice.
The advice we can offer is wide-ranging running from the likely costs of setting up your business, commercial contracts through to pensions planning.
Setting up in business is a big decision – we can help you ensure it is the right one.
For further information and advice contact us on enquiries@spwca.com
Self Employment
You need to carefully consider a decision to move to self-employed status. This is because there are very strict Inland Revenue rules governing self-employment.
The crux of the issue is that the Inland Revenue wants to ensure that employers do not avoid Employer’s National Insurance liability by trying to class people who work for them as self-employed rather employed. So if you switch to self-employment but end up doing exactly the same work in exactly the same way then it is very likely that the Inland Revenue will deem that you are still an employee. They will say that the usual PAYE and National Insurance liabilities apply.
To discuss the whole issue of self-employment with us contact us on enquiries@spwca.com
Partnership
THINKING OF FORMING A PARTNERSHIP?
If you’re debating whether or not to establish your business venture as a partnership you should consider the following issues:
- The risks associated with the venture
- The relationship between, and the roles of, the various partners
- Disclosure issues
- The exit route
The tax situation is very similar to the one that exists for self-employed people. The profit included in the self-assessment returns of the partners comes from the partnership accounts. You might be wise to consider limited company status as an alternative, even though there are slightly higher compliance costs with that option.
To talk through all your options with one of our experienced advisors contact us on enquiries@spwca.com
A Full Service for Limited Companies
A FULL NOT LIMITED SERVICE FOR LIMITED COMPANIES
We can help you with all aspects of establishing a limited company:
- deal with all the administration of forming a limited company
- provide advice on the company structure
- help you choose the limited company name
- register your company with the Inland Revenue
- register your company with HM Customs & Excise
- set up your PAYE scheme
- set up your company’s statutory books
To discuss any limited company matter with us contact us on enquiries@spwca.com
Business Taxation: The Basics
Tax And National Insurance For Self-Employed Business People
As a self-employed person you are responsible for paying your own tax. In order to do so you will need to keep comprehensive and accurate records.
The amount of tax you pay in any year is based on the profits from your business for your accounting year that ends within the fiscal tax year (which runs from 6 April to 5 April).
If you hire us as your accountants we can take care of all the calculations and paperwork for you. Based on the information you send us we can calculate your Income Tax and Capital Gains Tax liability and complete your tax return. Any tax you owe will be payable in two instalments in January and July. We notify you in advance of the amounts you have to pay across to the Inland Revenue.
If you are self-employed, you will be liable to two classes of National Insurance contributions:
- Class 2 National Insurance Contributions
- Class 4 National Insurance Contributions, which are paid on profits and gains at or above a set level.
You can apply for exemption from paying Class 2 National Insurance Contributions if your net earnings are less than a fixed amount. The exemption level changes every year.
Tax and National Insurance for Limited Companies
If as a business operator you trade through a limited company, then there are two ways in which you can take out a remuneration.
The first is by way of a salary. This type of payment is subject to PAYE and National Insurance in the normal way. Dividend payments are the second way, although you do have to be in profit before you can legally pay yourself a dividend.
Value Added Tax (VAT)
VAT is the tax charged on most goods and services by the suppliers of those goods and services.
Almost any business transaction can constitute what is known as a ‘taxable supply for VAT purposes’.
However, some supplies, such as finance and education, are not liable to VAT and are known as exempt supplies.
There are three rates of VAT:
- Zero rate - for example, food
- Reduced rate (5%) - domestic fuel
- Standard rate (17½%) - all goods and services that are not exempt or liable at the zero or reduced rate
If the taxable supplies of your business exceed or are likely to exceed a set limit in the course of a year then you must register for VAT with HM Customs and Excise.
