2.  Sole trader  Partnership  LLP  Limited company

3.  Easy and straightforward  Pick a name, issued share capital and directors  Online  Cost approximately £20  Certificate of incorporation issued within two days

4.  Separate legal entity  Responsible for: Filing annual return Annual accounts Accounting for corporation tax to HMRC  Limited liability Personal guarantee

5.  Registration  Account for quarterly  On time  Surcharges  VAT visits

6.  Monthly or weekly routine  Responsible for the deduction of PAYE/NIC and payment to HMRC  Employ a bookkeeper to administer  Outsource to an accountant  Should be easily affordable

7.  Account for once a year  Losses can be carried forward  R&D Tax Credits  Can claim a tax rebate of circa 33.35% of money spent on R&D  Grants reduce claims but don’t cancel

8.  PAYE and NI on salary drawn  Dividends  Annual self-assessment tax return  Capital Gain on sale  Entrepreneurs’ relief

9.  Capital Gains Tax currently 20%  Eligible for a tax rate of 10% if qualify for entrepreneurs’ relief  Individuals qualify for a lifetime limit of £10m  Must own 5% of shares  Trading Company  Director or Employee

10.  EIS/SEIS relief  Tax relief for unconnected investors  Income tax relief of 30%/50% on their investments  Exempt for Capital Gains Tax on disposal  Capital loss on disposal of shares allowed against income

11.  Unquoted  Qualifying business activity  Money raised must be employed within a specified period  Can apply for advanced assurance

12.  The right to buy shares at a pre agreed price given achievement of performance criteria  Used to retain and motivate staff  If shares are just given to staff this would result in a personal income tax charge  This can be expensive and at a time when the employee might not have the funds

13.  EMI allows options to be granted without any tax charge to the employee until the shares are sold.  Shares must be market value when the options are granted.  Employee cannot own more than 50% of the company.  Must spend more than 25 hours per week working for the company.