Starting a new Business

Maximise your chances of success

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 

It is important to set out your business objectives in writing.  This will help you, and potential backers, be satisfied you have sufficient and relevant experience in the type of business that you plan to launch.  You should consider how you will finance the company and what your targets are for turnover and profit, and how much you may have to invest in capital assets. It is useful to consolidate this information into a formal business plan which can be shown to potential business partners or to obtain a business loan.

VAT (Value Added Tax)

You will need to decide whether you need to register for VAT from the start of the business, or at a later date.  There is also the option of voluntary registration to consider as in some cases this can benefit your cash flow and profitability.

 Tax Issues to consider

  • Tax Penalties - it is important that once you have started trading you advise The Revenue.  This should be done within 3 months of start up or you may find yourself incurring a penalty.
  • VAT Penalties - these can be incurred if you don't register for VAT when you should have done, ie. once you expect your turnover to exceed the current thresholds.  Once you are registered the return have to be submitted every 3 months, and any payments made within strict deadlines.
  • The importance of 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, or VAT deductions, will not be allowed. At stores such as B&Q it is necessary to actually ask for a vat receipt as the normal till receipt is not sufficient for vat claims.
  • Company Car - there are significant differences in the tax treatment of cars owned by limited companies and cars owned by the self employed, so it is a good idea to consider the options before deciding how to manage your business travel costs, so you don't end up paying too much tax un-necessarily.  Self employed persons should keep a log of business mileage to support any claim for tax relief. Limited company owners will need to compare the cost of running a car either owned by the company or owned by themselves.
     

How we can help.

We have considerable experience in compiling business plans, and can advise you on the things to consider when starting up a new business.

If you would like to discuss any of the above then call us on 0161 973 4499 or complete our enquiry form and we will call you back.