Have you recently made the decision to become your own boss? It is an exciting prospect for you and your family. As is common with many small startups, there’s a good chance that regardless of how well you’ve planned, there have been at least a few unexpected roadblocks. Most new business owners realize that the complexities involved in their accounting practices amount to much more than keeping an accurate ledger of money coming in versus money going out. Not only that, there are also licensing considerations. 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 some things you need to know from an accounting point of view.
Your first priority, if you haven’t already, is signing up for HM Revenue & Customs. You will need to determine if your business has any corporate tax liability, and you will also need to ensure that your business tax returns are filed by the due date. That being said, even if these are not considerations for your particular business structure, you must still register with HMRC.
Any idea how your business is structured? There are legalities associated with these issues and it is crucial that every detail is carefully considered for accuracy. An accounting firm may be your best option. You can provide assistance and guidance as you navigate the murky waters associated with different self-employment statuses. Not only that, but building a strong relationship with your accountant can be one of the best investments you make. There is a certain peace of mind associated with locating those people who share the same vision for your business as you and whose goals reflect yours. The many business structures include:
• Social enterprises
• Limited liability companies (LLC)
• Limited liability companies (LLP)
• Sole owner
Another detail that many small businesses are unaware of is the HMRC requirement that any changes to the business structure must be remembered through change requests. There are time considerations that you need to take into account and it is up to you to ensure that you have covered all of those bases.
Once you register your business with HMRC, you will receive a package in the mail that includes various forms, notes, and the CT41G, also called “new business details.” It is important that this form is given the highest priority as you must review it and return the completed and signed form.
Finally, help is available. You can easily locate the various legal structures and discern which structure will best suit your needs and those of your new business by visiting the HMRC website. Other options you can do conveniently online include registering your new business, locating tax rates and allowances, and even finding 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 create unnecessary burden by missing a little detail that will put your hard work in jeopardy. Cover those bases ahead of time to make sure you have an overwhelming feeling that details have been missed and it doesn’t cause loss of sleep.