Starting Your Business

Register for Taxes

You'll want to register pretty quickly for any taxes you need to register for, such as:

• Corporation Tax - though normally done as part of incorporation

• Self Assessment - where you are a sole trader

• PAYE - where you are going to employ staff

• CIS - where you are going to work for a contractor, or hire subcontractors

• Pensions Provider - where you are going to employ staff

• VAT - if your turnover is going to exceed the VAT registration threshold (2023: £85,000)

Get A Business Bank Account

It is always advised to get a separate bank account for your business, rather than using your personal account.

This is especially important when operating a limited company, as it is a separate legal entity to yourself.

Even for sole traders, we absolutely recommend you have a separate business account. It keeps your bookkeeping tidier, cheaper and easier to audit.

Organise Yourself as a Business Owner

Running a business requires an extra level of organisation not needed in general life.

You'll need to keep on top of invoices, keep records, ensure you comply with legislation etc.

Make sure you keep records of your business, and records of employees and their pay for the required number of years.

Get out of the habit of screwing up a receipt in your pocket with your change. You now need to keep and submit every invoice or receipt, for every sale or purchase you make. Even when you buy a notepad for £1 and pay cash. It all needs recording.

Put Aside Your Taxes

It's easy to forget, but part of the money your business has, doesn't belong to it.
A percentage of it needs to pay your taxes on profits.
When you pay employees, you withhold their taxes which you need to pay to HMRC on their behalf.
If you're VAT registered, the VAT you charge customers is merely held by you, to later pay to HMRC.

Always be aware of what parts of your business's money is owed to HMRC.
Remember that if you use that money to spend, you'll have to find it later when your taxes are due.