Nichola Ross Martin's Tax Consultancy

Getting started in business: a menu-checklist for advisers to talk over with new clients.

Which trading vehicle is most suitable?

See:

• Trading vehicles: a beginner's guide introducing the different trading vehicle used in the UK and Europe.
• Which trading structure is suitable for me? a concise side-by-side comparison of the different trading vehicles used in the UK.
• Partnerships: a concise comparison of the different types of partnership recognised in the UK.
• Sole trader v company: an "At a glance" comparison of tax and legal treatment.

What structure is likely to save the most tax?

• Will I save more tax if I trade via a LLP? comparing a company and a LLP
• Will I save more tax if I trade via company? comparing a company and a sole trader
• Sole trader v company: a concise comparison of the two.

Basic formalities and legal agreements

Partnerships

Partnership agreements are to some extent covered by the respective partnership acts which set out various defaults. It is advisable to draw up an agreement to suit the nature of the partnership.

Companies

See

• Share certificate template (free view)
  
• Shareholders' Agreement (paid content)

Registration with HM Revenue & Customs

HMRC is currently rewriting its website to allow a "one click" registration process. Until this is launched, new businesses must approach registration on a tax by tax basis.

• When a new company or LLP is formed Companies House informs HMRC. HMRC will then create a file and contact the new owners
• All types of trading entity (including companies) must inform HMRC when trading commences.
• Where a tax adviser or accountant is appointed notify HMRC using form 64-8
• Companies, see New companies: tax registration checklist

Registering: different taxes

A business or an individual must register for either corporation tax or income tax there are additional considerations:

• PAYE: if you are taking on employees or paying directors, or making available employment type benefits you will need to set up a PAYE scheme
• VAT: if you think that your turnover is going to exceed the VAT registration threshold in the 30 days, or taking the last 12 months you are going to exceed the threshold you will need to register for VAT.
  • VAT registration may be done on a voluntary basis.

Miscellaneous FAQs

• Will I need a pension scheme?

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