Thirty percent of business start-ups fail in
the first twelve months. It is much easier to avoid making mistakes,
and to maximise your future chances of success, if you plan your
business start up in advance with professional help. Cash flow is
one of the most important factors for any start up business. We can
help you from day one to find the best methods of bookkeeping, the
best tax saving positions and help you to plan for likely outgoings
Business Structure
Are you going to launch your business as a sole trader, partnership or limited company? Some of the criteria that should be considered are commercial risk, expected profitability, financing, use of cars for company purposes, and of course tax planning preparation and VAT considerations.
Business Plan
Have you set out your business objectives in writing? Can you demonstrate qualified experience in the type of business that you want to launch? How are you going to finance the company? What are your expectations for sales, profitability and investment in assets? Have you consolidated all this information in a formal business plan?
VAT (Value Added Tax)
You should decide whether it is in your best interests to register for VAT from the start, at some future date, or not at all if your trade is outside the scope of VAT. The decision you make on this point could affect both profitability and cash flow of your new business.
Tax Traps to avoid
- Tax Penalties - as soon as you have set a start date, ensure that you notify the Inland Revenue of your intention to commence trading. Self employed businesses face a fine of £100 if this is not done within 3 months of start up, limited companies face an even stiffer penalty of £300!
- VAT Penalties - do not represent yourself as registered for VAT if you are not, this is considered fraud. If you do register for VAT submit your returns and pay your dues on time to avoid interest and surcharges.
- Missing Invoices - always obtain a proper invoice for any business purchase, a VAT invoice if you are registered for VAT, otherwise you may find that your claim for tax relief will be denied, as will your VAT reclaim.
- Company Car - whether
you are self employed or a limited company planning for the use
of a car in your business needs to be thought through carefully.
Self employed persons will need to keep a log of business
mileage to backup any claim for tax relief. Limited company
owners will need to compare the cost of running a car either
inside or outside the company - potentially high personal tax
charges may be payable if this cost comparison exercise is not
undertaken.
How we can help.
We would be delighted to assist with the preparation of a business plan, and to help you choose the best business structure for your business.
If you would like to discuss starting your business then call us on 0161 973 4499 or complete our enquiry form and we will call you back.

