Have you recently made the decision to become your own boss? It’s an exciting prospect for you and your family. As is common with many new small businesses, there’s a good chance that no matter how well you planned, there have been at least a few unexpected road blocks. Most new business owners realize the intricacies involved with their accounting practices equate to far more than keeping an accurate ledger of money in versus money out. Not only that, but there are licensing considerations, too. Fortunately, with a proactive approach and access to the right information, your first year as your own boss doesn’t have to be overwhelming. Here are a few things you need to know from an accounting aspect.
Your first priority, if you haven’t already done so, is to register with HM Revenue & Customs. You’ll need to determine if your company has any corporation tax liabilities and you’ll also need to ensure your company tax returns are filed within the deadline. That said, even if these are not considerations for your particular business structure, you still must register with HMRC.
Any idea of how your business is structured? There are legalities associated with these issues and it’s crucial for every detail be carefully considered for accuracy. An accountancy firm might be your best option. It can provide assistance and guidance as you navigate through the murky waters associated with varying self employment statuses. Not only that, but building a solid relationship with your accountant can be one of the best investments you make. There is a certain reassurance associated with locating those people who share the same vision for your business as you and whose goals mirror your own. The many business structures include:
• Franchises
• Social Enterprises
• Limited Liability Companies (LLC)
• Limited Liability Partnerships (LLP)
• Sole Owner
• Self Employed
• Partnership
Another detail many small businesses aren’t aware of is the requirement by HMRC that any changes in a business structure must be memorialized via change requests. There are time considerations that you must be aware of and it’s up to you to be sure you’ve covered all those bases.
Upon registering your business with HMRC, you’ll then receive via post a package that includes various forms, notes and the CT41G, also referred to as “new company details”. It’s important this form receive top priority since you must review it and return the completed and signed form.
Finally, there is help available. You can easily locate the various legal structures and discern which structure will best meet you and your new business’s needs by visiting the HMRC website. Other options you can do conveniently online include registering your new business, locating tax rates and allowances and even find tips for choosing the best accountant for your unique business.
While starting a new business is an exciting time, the last thing you want to do is unnecessarily create a burden by missing some small detail that will jeopardize your hard work. Cover those bases early to ensure an overwhelming sense that you’ve missed the details don’t cause lost sleep.
