starting your own business

A Rough Guide to Starting Your Own

Business

Should I Start My Own Business?

• There are many reasons both for and against starting your own business – only you can really make the decision.

Reasons For:

• Flexibility

• Satisfaction

• Control

• Unique business

• Tax saving

• Unemployment

• Working from Home

Reasons Against:

• Employment Status

• IR35 Legislation

• Insecurity

• Ability

• Responsibility

• Legal Responsibilities

• Organisation Skills

• Personal Liability

Reasons which should not affect your decision:

• Confidence

• Concerns about H M Revenue and Customs

• Concerns about setting up a Ltd Company

What Do I Do First?

• Set your Goals

• Prepare a Business Plan

What Do I Do With My Business Plan?

• Discuss your Business Plan with someone else

Find an Accountant

• Make sure you find one who you are comfortable with as you will need to have a close relationship with them

What About H M Revenue & Customs?

• Register your Business with H M Revenue & Customs

• If you are trading as a sole trader or in a partnership you will need to notify HMRC that you are self employed.

• If you prefer to trade through a Limited Company you will need to have the company ‘formed’ at Companies House. You will then be sent a form CT41G by HMRC which you must completed an send back to them by post.

• Once registered you (and your Ltd Company if relevant) will be given a UTR (Unique Tax Reference) number.

• Your accountant will be able to assist you with these processes, or do them for you for a small fee.

Business Bank Account:

• Set up a Business Bank Account

• When selecting a bank consider the deals they are offering, and their terms.

Bookkeeping:

• Decide on your bookkeeping system – discuss this with your accountant.

• Most start-up businesses should be able to manage with a spreadsheet for recording their income and expenses.

• If you would like a free bookkeeping spreadsheet template please let me know.

Do I need to be VAT Registered?

• When starting up a business it will probably not be necessary to register for VAT immediately, however it may be a benefit to do so.

• Your accountant should be able to advise you on this, and on the various VAT schemes available.

Launch Your Business:

• Start trading – obtain your initial equipment, stocks and clients/customers

There’s No Need To Scream:

• Please remember to contact your accountant with any queries throughout the year – they should not charge for quick questions and it could save you a lot of time and hassle.

DFL Accountants Ltd

• The Handouts are available as PDF documents – please e-mail me for a copy.

• I am also happy to answer any queries on the phone, or arrange a free initial meeting.

• Darren Loring (FMAAT)DirectorDFL Accountants LtdTel: 01423 550002e-mail: darren@dflaccountantsltd.co.ukskype: dfl.accountants.ltdWebsite: www.dflaccountantsltd.co.uk