New Business - What does it all cost - TAX, NI etc..

[gsalmon4]

Hi all

Setting up your own business seems daunting. Is it expensive? as in insurances and things, ive no idea about running your own business, help much appreciated here!!

Is sorting out your TAX a nightmare. And how do you go on about NI (National Insurance).

Any advice on all this will be greatfull. Reading the Inland Rev website seems a challenge too!

Thanks to all who respond!!

 

[Russ]

These things that you mention all need to be taken in to consideration but the thing that is most important is a good business in the 1st place!

If you have a successful business you can employ the services of an accountant, insurance is required to cover liability and can easily be found in what seems a very competitive market place.

What are you thinking of starting up in and why?

 

[Alpha]

Glen

as you are a limited company you will probably require a PAYE scheme setting up. This will allow you to pay at least a minimum salary £407/month and thereby retain your entitlement to benefits and state pension.

As directors you are also employees of the company.
Is the secretary also a shareholder and director? If not how are you paying her.

As far as insurances are concerned you will require public liability insurance and possibly employers liability insurance depending on whether you have anyone employed who are not the owners.

There is an excellent guide book written by a member of the forums called the essntial business guide which I would highly recommend as a good cost effective reference source particularly for new business.

Julie Stanford has kindly given forum members £4.95 off the retail price of just £25 pounds (ish)

If you are interested the link is http://www.ukbusinessforums.co.uk/viewtopic.php?t=3835

 

[gsalmon4]

Thanks for advice, both reply below.

appointdirect - The company installs and maintains light, sound and DJ equipment in pubs, clubs and various other venues. Also Plasma/monitor screen installations and maintenece contracts are adhered.



Alpha - The secretary is the other Directors partner, so I suppose they are joint shareholders of the company.
At first I will be an employer to see how the business goes then eventually if all takes off well, I will them become a shareholder in the company (Unsure of tital). Sorry I should of made that clearer at first. So as liability insurance goes the he will need to get me employers liability.
Who runs PAYE Schemes?
Thanks for the link.

Cheers

 

[Alpha]

You register or setup a PAYE scheme with the HMRC (Inland Revenue).

This then allows you to operate a payroll and pay over any tax and national insurance.

This depends on how much you are going to require to be paid.

Can your secretary operate payroll?

If not you will need to source someone to do it for you.

There is normally a minimum charge for running payroll eg we charge a minimum cost of £15 per run which does make it rather expensive per employee for small companies.

The small advantage you may get is the 'bonus' currently being paid by HMRC for small companies filing online at the year end which will be £250 for this tax year.

There are also a few other forum members that can do payroll. BMS is one of them.

 

[gsalmon4]

Thanks again Alpha.

From what I know now, I will take this away and discuss with the director.

Cheers

 

[BMS]

Hi Glen

As Alan said you will need to register as an employer with HMRC, this is a simple enough operation, just takes a few details regarding the company and directors - a few minutes on the phone.

You will need to operate a PAYE sheme for deduction of Tax & NI and there is also the self assessment tax returns that are compulsory for directors.

Hate to blatantly plug our company but as Alan has already mentioned our name, what the hell.......

As you are a new company ( I Think ! ) we could cover your payroll for the 1st month free ( sorry Alan !! )

If you need more information please take a look at our website or give me a call (mobile 07963 518762 is the easiest to contact me on)

 

[Alpha]

No need to be sorry BMS.

I did give your name out so that Glenn at least has a choice.

 

[camelot]

Hi Glenn,

You may be interested in the following link.
It is the Business Link site and gives information that you may need in starting a new business. for example, finance and grants, starting up, taxes employing people.
It's a good starting point.

http://www.businesslink.gov.uk

Hope it helps.

Dave

 

[Astaroth]

For insurance you will need to have employees liability (if you have any it is a legal requirement) Public liability insurance can be a good idea but is not a legal requirement. There are many other types of insurance that may be prudent but it would depend on your line of business.

If you are intending to use your car or your home in connection with your business you will need to check that your motor and home insurance will cover - most can but there may be an additional premium to pay.