Just started a new business

[RogerRoger]

Hello everyone, I have just started a new business selling software and computer parts.

I was just wondering when the best time is to register for tax and what I need to pay? Also i want to have a business company bank account but cant find somewhere that doesnt charge! Where is best?

 

[jbell2210]

You must register as self employed with HMRC within 3 months of starting to trade. You will not have to pay any tax until you submit your first tax return which, if you started trading before 5 April 2010 will be due by 31 January 2011.

If you are anticipate that you will be earning over £5,075 profit this year you will have to make a small amount of class two national insurance contributions weekly but HMRC will give you more info about this when you register.

Business bank account - try HSBC they offer 18 months free. Also, I believe Alliance and Leicester offer free business banking in some cases. Most banks will eventually start charging you for paying in cash/chqs but you can avoid this by paying them into a personal account and then moving them over by electronic transfer which is free of charge.

Hope thats helpful.

Please feel free to pm me if you need any further or more specific advice.

 

[alpha7158]

Join the FSB:
http://www.fsb.org.uk/

It costs £100 but entitles you to free business banking with Coop.

Are you registered as a limited company? If so then where are you registered?

I recommend getting an accountant. If you get a good one then they will be lenient and cheaper whilst you are smaller in order to support your growth.

 

[RogerRoger]

Join the FSB:
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It costs £100 but entitles you to free business banking with Coop.

Are you registered as a limited company? If so then where are you registered?

I recommend getting an accountant. If you get a good one then they will be lenient and cheaper whilst you are smaller in order to support your growth.

We arent registered at the moment, it seems a bit complicated to be honest and it costs more! What is this about having to register in three months? Do I have to do this?

When do I need to register for tax if I need to pay it?

 

[alpha7158]

If you are earning money then you have a certain time limit to register as a limited company or a sole trader. You could be fined if you are found to be trading unregistered.

You are only obligated to register for VAT if your revenue is at or above £70,000. Though you should register slightly before to prevent being penalised if you go over before registering. There can be tax benefits to registering early, especially if your customer are other businesses who can claim back their VAT on payments.

 

[jbell2210]

You must register with HMRC within three months, this is effectively "registering for tax" as you say.

If you want you can PM me your email address and I'll send you the forms you need.

 

[RogerRoger]

You must register with HMRC within three months, this is effectively "registering for tax" as you say.

Yes, but is there a way not to do this?

 

[alpha7158]

Yes, but is there a way not to do this?

Unfortunately you have to register if you are operating so that you pay income tax. It is really simple.

Here is a really simple guide to registering as a sole trader:
http://www.businesslink.gov.uk/bdot...&r.l2=1073859131&r.i=1073789606&r.t=RESOURCES

And here is the form you need to fill in:
http://www.hmrc.gov.uk/forms/cwf1.pdf

Pretty much all you have to do after this is declare your earnings and pay your income tax and National insurance contributions.

 

[gouldie0]

Yes, but is there a way not to do this?

So you want to trade but not register as self employed?

You must register as self employed within 3 months, whether you pay tax for the activities you complete within your accounting period is another matter.

I would strongly recommend you register with HMRC and then speak with an accountant / bookkeeper about how to manage your paperwork and invoices.

Here is a link to register as self employed, this can be done online and you don't necessarily need the paper based forms.

http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm#1

Kind Regards

Neil