Newton Accountants

01242 323 183

New business

 

If you’re looking to set up a new business and need advice, we can help. Over the years we’ve helped many people set up and know how overwhelming it can feel. There’s just so much you feel like you need to know, and it’s hard to find all this information.

We’ve included a brief overview of the main things you need to think about, and over time we’re going to add more detailed content.

The most important thing you can do is to write your business plan, then speak to an accountant. Accountants help start-ups every day, so can help you choose the best way to structure your start-up and can give advice on your business plan to help maximise your chance of being profitable and successful. Accountants can help with:

  • Reviewing you business plan to make sure it makes sense.
  • Advising on the best structure to start your business with (Sole trader versus limited company).
  • Registering you with HMRC.
  • Helping create your bookkeeping system.
  • Offering general business advice.

 

New business – The first things to do are:

 

Write a business plan. This is so important to do because it will help you see whether you actually have a potentially profitable idea, and forms the basis of everything you do going forward.

Do a household budget. Your start-up might not be an overnight success, so you need to make sure you’ve got enough money to survive whilst it’s building. You’ll be able to find out whether you have enough money to quit your current job and work full-time on your business, or whether you need to stay in your current job whilst it builds.

 

New business – The next things to do are:

 

Find an accountant. They will be able to advise you on the best and most tax efficient way to set your business up. Your accountant should talk to you about you everything else that is in this article, but it’s really useful for you to read on so you understand it.

Decide whether to set up as a sole trader, partnership or as a limited company:

 

If you decide to be a sole trader you will need to:

 

  • Register with HMRC as Self Employed
  • Prepare accounts each year
  • Pay class 2 and class 4 national insurance, and income tax based on the profits of the business
  • Potentially register for VAT
  • Possibly buy the website name for your business so no one else can use it
  • Possibly set up a dormant company with the same name so no one else can use the name
  • Get insurance

 

If you decide to be a partnership you will need to:

 

  • Form the partnership
  • Register the partnership with HMRC
  • Each of the partners will need to register with HMRC
  • Prepare accounts each year
  • Pay class 2 and class 4 national insurance, and income tax based on profits of the business
  • Potentially register for VAT
  • Possibly buy the website name for your business so no one else can use it
  • Possibly set up a dormant company with the same name so no one else can use the name
  • Get insurance

 

If you decide to be a company you will need to:

 

  • Create the company
  • Register the company with HMRC
  • Register the directors for Self Assessment
  • Discuss with your accountants the most tax efficient way to take the money out of the business. You will need to decide whether to take the money as salary or as dividends
  • Possibly set up a payroll
  • Possibly buy the website name for your business so no one else can use it
  • Possibly set up a dormant company with the same name so no one else can use the name
  • Get insurance

Whatever type of business you think you’ll need, you should always discuss it with your accountant, and get them to set it up for you. We do this every day and can advise you on the most tax efficient way forward.

 

Common questions people have when setting up a new business

New business
  • Should I set up as a  limited company, sole trader, or partnership?
  • When do I need to register with HMRC as a sole trader, and how do I register as Self Employed?
  • How do I form a limited company?
  • When do I need to register with HMRC as a company?
  • Do I need to register for VAT?
  • What is the VAT threshold?
  • How do I set up a business
  • How to write a business plan
  • Do I have to register my side-business?
  • SEO – Introduction
  • How to choose a name for a business
  • Should I have a separate bank account for my business?
  • How to start a business whilst working full time

About Newton Accountants

 

We are a firm of accountants based in Cheltenham, helping businesses and individuals in Chelteham, Gloucestershire and the rest of England.