What Ray Croad has to say about starting a new business

It is a very exciting but nervous time when you start a business. There are many matters that one needs to deal with and one of them is advising HMRC that you have started trading.

Ray Croad

Ray Croad

If you had the presence to form a Limited Liability Company then HMRC will automatically send a questionnaire to the company’s registered office. However, if you are a sole trader or partnership the responsibility to notify HMRC is yours.

You can do this by clicking onto the HMRC link below and in the search section type in “Starting a business”.

Click here to go to the HMRC website.

You will find that HMRC provides you with the opportunity to register with them and if you need to register for VAT they will provide you with instructions on how to do that as well.

If you employ staff when you commence your business you will need to register with HMRC as an employer. To do this click on the link below and in the search box type “Employing staff”.

You will find that HMRC provides a link on “How to register as an employer”

It may be that you are debating whether to purchase a business from another trader but you are not sure what the figures provided to you mean. If this is the case we can help with our free initial consultation. We can look at the figures with you and explain what they mean to us.

Whatever you do when you start a new business make sure that all the authorities are contacted in good time as delaying may cost you in the form of financial penalties.

New for small businesses!

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Cash Accounting for Small Businesses

From 6 April 2013, small sole traders and non LLP partnership businesses will have the option of calculating their taxable profits on a cash basis. (Money received less payments made). The definition of small is one trading below the VAT Threshold which is currently £77,000.

This is not necessarily of much benefit to traders as there are pitfalls and the use of this scheme depends entirely on the circumstances of the business. There is also the question of making sure one does not duplicate income or expenses when going over from invoice basis to cash basis.

We are still waiting to hear the final details of the scheme when they have been worked out and published.