One of the main benefits of becoming self-employed is the ease with which you can get started in business. You can even become a sole trader (another term for self-employed) while working for someone else. So you can test the water and see whether working for yourself suits you. Here are ten steps to take when you become self employed for the first time. 1.  Decide to go self employed The first big decision you make when starting a business is whether to go self employed or to set up a limited company. Most businesses are run as sole traderships or partnerships. In fact, there are over 4 ..read more

One of the most important decisions you make when you set up a new business is to decide what type of trading structure to use. There are several less widely used legal structures – such as limited liability partnerships which are often used by accountancy and other professional firms. However, the vast majority of small business owners work as self-employed (i.e. as ‘sole traders’ or ‘partnerships’), or via their own limited companies. Please take some time to read the following points to help evaluate which trading structure is best for you. Tax Issues Limited companies, their directors, and ..read more

A partnership offers a simple way to get started if two or more people wish to go into business together. In this guide, we look at the main aspects of setting up and running a business partnership in 2024: What is a business partnership? What are your liabilities as a partner? The legal considerations of setting up a partnership. How to choose a name for the partnership. How to form a partnership and register with HMRC. How does tax work in a partnership? Useful services – accountants, software, banking, licenses and insurance. What is a business partnership? A partnership is formed when tw ..read more

Knowing how well your business is doing at any point in time is important for several reasons; if you want to attract new investment, arrange a loan, plan for the future, or even sell the business. Turnover is one key indicator and profit another although the two are not to be confused. This quick guide explains exactly what turnover is, why it matters, and how to differentiate it from profit. Turnover definition The official definition of turnover according to the Companies Act is stated as …the amount derived from the provision of goods and services after deduction of trade discounts, value ..read more

Tax isn’t the most exciting part of running your own business, but it is an issue that you will have to tackle at some point. To help you to quickly get to grips with the subject, here are some handy tax tips based on our findings of working with small businesses over the past 20 years. 1. Meet your deadlines on-time to avoid penalties If you’re work via your own limited company, make sure you submit your paperwork ontime. For company owners, this includes your annual accounts (to HMRC and Companies House), and Confirmation Statement. If you are a sole trader or member of a partnership, submit ..read more

A dormant company is just a standard limited company that doesn’t trade and has no accounting transactions. There are two main situations where owning a dormant limited company is beneficial to a business owner. Protecting your interests if you are a business operating as a sole trader, or are thinking of becoming self employed. Preserving your limited company, if you are stopping trading for a period of time. Dormant companies can also be used to hold an asset, such as a freehold property. However this purpose is of limited relevance to small business owners, so it will not be covered in th ..read more

Here are 10 tips to help you keep on top of your VAT responsibilities as a small business owner. From choosing the right VAT scheme in the first place, to filing your quarterly returns on time. For in-depth information, visit the HMRC VAT microsite here. You can also read our own overview of Value Added Tax. Top Ten Value Added Tax (VAT) Tips 1. Getting in touch You can get in touch with HMRC’s VAT helpline on 0300 200 37000 (8am to 6pm). Alternatively, find other ways to get in touch here – including the option to access a Webchat – a useful option, from personal experience at BytesStart. 2 ..read more

After the sole tradership, the limited company is the most popular trading structure in the UK. In this guide, we look at the key features of the private limited company – plus some interesting facts. How many limited companies are there in the UK? According to Companies House, there are over 4.8 million companies on the register (March 2022). 96% of this number was made up of private limited companies. Interestingly, the majority of companies on the official register are not ‘actively trading’. The number of companies has increased significantly over time – with fewer than 1m companies regis ..read more

The Chancellor, Jeremy Hunt, has announced a National Insurance cut for the self employed from April 2024. The rate of Class 4 NICs will drop by 1%, and Class 2 contributions will be scrapped altogether. But how much will small business owners benefit, in reality? Class 2 to be scrapped, Class 4 to be cut by 1% in 2024. In his Autumn Statement, the Chancellor confirmed that both employees and the self employed would benefit from cuts to NI rates. For employees, the rate of Class 1 NI will be cut from 12% to 10% from January 6th 2024. Employees pay NI on wages above £12,570 per year and at 2% a ..read more

With tax rates at a post-war high, a leading accountant shares three different ways to help business owners reduce their personal tax liabilities. Thanks to Tom Walker, Partner at Wellers – personal tax planning accountants – for this useful guide The UK is entering a period of significantly high tax rates. In fact, tax rates haven’t been this high since the 1940s. However, due to the nature of the UK tax code being so long (it’s currently more words than the average person will read in their lifetime) there are natural loopholes that can be exploited to minimise the amount of tax payable. The ..read more