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What financial matters do you need to consider when setting up a new business?

We continue to see a steady stream of clients wanting to set up new businesses.  Here are some of the financial matters to be considered.
  • Decide whether you want to be employed or self-employed. If the former, then a Limited Company is probably best. If the latter, choose an LLP or simple partnership.
  • If this means you’re moving from employment to self-employment, or vice versa, you will need to notify HMRC. We can help you do this.
  • For a Limited Company or LLP, Companies House will require a registered office address. If you haven’t yet arranged offices to work from and you don’t want your home address appearing on the public record, consider using a service address. Our Company Secretarial Team provides registered office facilities to hundreds of companies.
  • Open a business bank account as quickly as possible. It can take weeks and sometimes months to open a bank account in the UK, particularly if you’re not already resident.
  • Consider whether you need insurance; key man, professional indemnity or any other type.
  • Consider registering for VAT early on. The business might not meet the minimum threshold for mandatory VAT registration but without it you can’t reclaim VAT on expenditure.
  • If you’re going to employ staff or be an employee yourself (eg a director of a Limited Company, earning a salary) you will need to register for PAYE.
  • Read up on auto-enrolment for pensions. You may have a responsibility to enrol staff.
  • It’s never too early to get a handle on bookkeeping. Even if you choose to do the bookkeeping yourself, keep good records from the start.  Our Business Services Team can run your back-office bookkeeping, VAT, payroll and management accounts function.

About the author

Claire Watkins

+44 (0)20 7556 1482
watkinsc@buzzacott.co.uk
  • Decide whether you want to be employed or self-employed. If the former, then a Limited Company is probably best. If the latter, choose an LLP or simple partnership.
  • If this means you’re moving from employment to self-employment, or vice versa, you will need to notify HMRC. We can help you do this.
  • For a Limited Company or LLP, Companies House will require a registered office address. If you haven’t yet arranged offices to work from and you don’t want your home address appearing on the public record, consider using a service address. Our Company Secretarial Team provides registered office facilities to hundreds of companies.
  • Open a business bank account as quickly as possible. It can take weeks and sometimes months to open a bank account in the UK, particularly if you’re not already resident.
  • Consider whether you need insurance; key man, professional indemnity or any other type.
  • Consider registering for VAT early on. The business might not meet the minimum threshold for mandatory VAT registration but without it you can’t reclaim VAT on expenditure.
  • If you’re going to employ staff or be an employee yourself (eg a director of a Limited Company, earning a salary) you will need to register for PAYE.
  • Read up on auto-enrolment for pensions. You may have a responsibility to enrol staff.
  • It’s never too early to get a handle on bookkeeping. Even if you choose to do the bookkeeping yourself, keep good records from the start.  Our Business Services Team can run your back-office bookkeeping, VAT, payroll and management accounts function.
You might also be interested in… Professional Practices

Our professional practices team are ready with answers on audit, financing, tax compliance and all the other issues you face. Talk to them and profit from our familiarity with your sector. You’ll save time, reduce risk and build a dependable relationship with a team who want your business to succeed just as much as you do.

Professional practices we work with:

Solicitors

We have extensive knowledge of the legal sector, working closely with many different legal firms of all sizes. We cater for all financial aspects of accounting, audit, VAT and tax returns, tax advice and payroll. We also have a high level of expertise in the SRA Accounts Rules, including the recent updates.

Architects 

As well as assisting with the financial aspects of your business, we work with firms on their business strategy. This includes growth plans, budgeting, forecasting and cash flow management. In addition to this, our specialist R&D tax team can assist with your research and development tax claims. This is an important and ever growing area within the architecture industry and a talented R&D team is essential in preparing a robust application leading to a successful claim.

Surveyors and engineers

We advise on accounting, audit and tax planning for firms of various sizes. We also help firms with their KPIs, succession planning, business restructuring and tax planning. We also assist with the conversion between limited liability partnerships (LLP) and limited company, advising and implementing the best business structure for your firm.

Experienced support for professional practices

  • Structuring and set-up: discuss with us the pros and cons of LLP v. Limited Company and ensure the right fit for your business
  • A one-stop shop: find all your accounting, tax, VAT, payroll and HR requirements within one firm
  • Tax planning for partners
  • Succession planning: consider exit routes for founding owners and discuss with us how to incentivise the next generation of business leaders
  • Partner/capital structuring: talk to us about profit sharing, fixed share v. equity, forecasting cash flows and managing partners’ expectations
  • Solicitors Regulation Authority (SRA) reporting: find out how to keep your firm below the SRA’s radar by ensuring compliance and good governance; use our expertise to provide a robust defence if challenged
  • Employee ownership structures
  • Mergers, acquisitions and bolt-ons: talk to us about valuing your firm and how to carry out effective due diligence on potential mergers.

Read more…

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