There are many different options and routes you can go down when you start your journey in to business. If you are working for yourself then you will set up a Sole Trader. If you are working with one or more people you can start a partnership or you may want to go straight in to a Limited Company. If you’re not sure of the best option for you , get in touch https://www.manybookkeeping.co.uk/contact-us/
5 Things You Need To Do:
- Contact HMRC to tell them you are becoming self employed https://www.gov.uk/register-for-self-assessment/self-employed. They will provide you with your UTR (Unique Tax Reference). You need this to submit your tax returns and if you need to register for any other taxes (ie VAT or PAYE).
- Open a business bank account. You can get very good business starter accounts with all of the High Street banks such as Barclays, Halifax, HSBC, Natwest and Santander and also from the online banks such as Mettle, Tide. You will need your business bank account to connect in to your accounting software (more on that a bit later)
- If you want an online presence buy your web domain. You can buy them from any reputable provider. You can then have your own email addresses for your business. Most now offer some in built software or WordPress to be able to create a website too.
- Are you going to be travelling for business? If you are and use a car then you should look at the potential for introducing your car as a business asset or if you’d rather claim the flat rate mileage you need to get in the habit of tracking all your mileage correctly.
- This is the big one. Choose your accounting software. HMRC is introducing Making Tax Digital (MTD) for Income Tax Self Assessment and it will impact anyone who is self employed from April 2023. What does that mean? From that date you will need to have in place a suitable method of accounting for your business finances so that each quarter you can submit figures to HMRC digitally. You won’t be able to log in and manually enter the figures, they will need to be submitted through software. If you don’t use online accounting software you have to use spreadsheets and then find an approved provider to transfer your spreadsheet data to HMRC. It will be far simpler (in our opinion) if you use accounting software that is already set up and ready to for the submissions.
We can help with all of the above and we’re only a phone call (01677 455420) or email (victoria@manybookkeeping.co.uk) away.
If you feel you would benefit from some guidance on the best structure for your business just give us a call and we can walk you through the whole process.
We can help you understand the different accounting software options available to you from Quickbooks, Xero and Freeagent or help you investigate any other options you are interested in.
Found the above helpful? We provide our clients with tips and advice throughout the year along with updates on changes that may affect them or their business.
When they first join us we provide them with various info sheets and guides to help them and their business go from strength to strength.
Ultimately we make sure your bookkeeping is accurate, prepare your accounts tax returns and make submissions on your behalf to HMRC and where applicable Companies House. If you want to find out how we can help your business get in touch today.
