TaxAssist Accountants, Watford Introduction Kam Sira TaxAssist Accountants, Watford Introduce yourself

About us TaxAssist Accountants are the UK’s largest network of accountants who focus their accountancy skills on small businesses. We have over 220 offices across the UK. Our network supports over 50,000 small businesses and taxpayers. A quick overview about who we are

Who we help Accountancy and Tax Specifically for: Small business including; Sole traders Partnerships Limited Companies Business start-ups and established business

Starting up in Business Preliminaries This presentation covers some things you will need to do. Whilst this list is not exhaustive it does provide a guide to things that need to be done before you start out in business.

Starting up in Business Business Structure Sole Trader, Partnership or Limited Company? Consider your commercial risk, financing, tax and VAT Business Plan Have you set out your objectives in writing? How are you going to finance your venture? 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 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?

Financial Planning Banks and Finance Companies VAT Identify your “friendly bank manager” Critical - be well prepared for your first meeting VAT Is it in your best interests to register? Banks and Finance companies - identify your "friendly bank manager" and make sure that you are well prepared for the critical first meeting. VAT - If you’re just starting out, you must decide whether you need to be VAT registered from the outset or not. If not, you must monitor your situation, so that you avoid a delay in registration should it become obligatory because this can lead to penalties and interest. In contrast, you should also monitor your position for when you think you are able to and would benefit from deregistering. Whether a new or existing business, you should also look at the VAT schemes you are eligible for and establish whether you would be better off adopting one or a mixture of them. Some VAT schemes can lead to tax savings and a reduction in bookkeeping responsibilities. The decision you make on this point will affect both profitability and cash flow of your fledgling business  

Tax Traps to Avoid Tax penalties VAT penalties Recording keeping Missing invoices Company cars Tax Penalties - as soon as you have set a start date, ensure that you notify HMRC of your intention to commence trading. You could face late registration penalties if this is not done within certain timescales. Furthermore, submit your returns and pay your dues on time to avoid interest and late filing penalties. 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. As mentioned already, failure to register for VAT when it becomes obligatory, can lead to late registration penalties. Record keeping – you are obliged to maintain records in order to facilitate the completion of your tax return but they are also beneficial to business owners because it allows them to monitor the profitability of the business. 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 Cars - 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.  

Conclusion Fail to prepare, prepare to fail… It is easier to avoid mistakes if pre-launch planning is undertaken. We can assist with preparation of a business plan and raising finance. We are often asked to advise clients who have failed to adequately plan their business start-up. It is much easier to avoid making mistakes, and to maximise your future chances of success, if this pre-launch planning is undertaken with professional help. As with most new ventures it is not what you know that catches you out, but what you don't know! 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. We can also help you with raising finance for all aspects of your business.  

We will happily answer any questions Q & A We will happily answer any questions