You have a great idea. Carried out your research and champing at the bit to start your own business. Here are some pointers to get you started on the right footing:-
- If you are starting small then the best thing to do is register as a sole trader. You can also set up as a Limited company or a partnership – it really depends on what the nature of your business is and personal choice. Obviously you need to have a business partner to set up a partnership!
- You must have a UK National Insurance number and be eligible to work in the UK
- You will need to register for Self Assessment tax with HMRC. This means that either you or your accountant will calculate your own tax.
- You will need to register for self employed National Insurance contributions.
- You must have a separate bank account for your business. If you join the Federation of Small Businesses (www.fsb.org.uk) one of the perks is a free business bank account which is really useful.
- VAT – you only need to register for VAT if your business turnover is more than £82,000 in any one 12 month period. You can voluntarily register if you want to.
- Find a good accountant that you feel confident has your best interests at heart. They will help and support you through the set up and continued running of your business, prepare your annual accounts and complete and submit your self assessment tax return.
- Keep a spread sheet of all your expenditure and income from the get go and keep it up to date. It doesn’t have to be a fancy accountancy package – a spread sheet is fine.
That should do it. For more information take a look at www.gov.uk/set-up-business-uk