Here are some of the financial matters to be considered when setting up a new business:
- 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 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.
We can help with all these matters so please contact us if you would like to discuss anything.
Partner, Head of Professional Practices Group
E | Watkinsc@buzzacott.co.uk
T | +44 (0)20 7556 1482