When going self employed it can feel like there are a mountain of things to consider. Apart from considering whether your business can succeed or not there are some practical elements that should be in place before you start Trading, the following checklist is designed to help you when starting out:
1. Register as self employed with HMRC.
You must notify HMRC that you have gone self employed within 3 months of starting trading.
2. Determine whether you need to register for VAT.
The UK VAT registration threshold for 2018/19 is £85,000. You must register for VAT within 30 days if your VAT taxable turnover exceeds £85,000 in a 12 month rolling period.
3. Set up a business bank account.
By setting up a separate business bank account you shall find your reporting requirements easier to manage. By shopping around it is possible to find deals specifically for business banking.
4. Ensure your business details appear on all business communications.
You want to make it easy for customers to find and contact you, by ensuring your business details are on all your stationary and business communications you let potential customers know how to contact you.
5. Ensure that you have appropriate business insurance in place.
Most businesses intend to take out insurance at the very beginning; however it is something which can easily fall off the radar once the business starts to find its feet. Business Insurance is essential and although none of us want to fear the worst it can help to support you.
6. Find a bookkeeper or accountant.
A good bookkeeper or accountant can save you time and money. By finding a bookkeeper that understands your business and your overall personal goals you should be able to achieve substantial long term tax savings. Keeping records is a requirement by HMRC, it also assists you in monitoring your cash flow and enables your accounts and VAT returns (if VAT registered) to be completed quickly and efficiently.
Ashored Bookkeeping and Accountancy are well placed to support you and your business in both the early and on going stages of your business development.