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Tip #2: Setting Up a Business – Our Advice on the Law



 Dec, 02 - 2018   Tips/Advice

What are the first steps to trade legally as a business?

Firstly, to avoid getting in trouble for cash in hand work, you need to register with HMRC – Its simple, just fill out an online form!

 

Register Your Business With HMRC: HMRC’s Online Form

 

What is your Business Structure?

An accountant can help you decide on your business structure. Are you a Sole Trader? Will you be working in Partnership? Or for businesses claiming and charging VAT, a Limited Company?

 

Am I expected to pay Tax?

Yes, your tax will be worked out annually and the amount you pay will depend on your earnings with deductions for expenses (purchasing tools, clothing, vans etc.)

 

Usually an accountant will be employed to do this, however you can do it yourself by filling a tax return with HMRC which has to be submitted every January. Limited Companies are an exception, and an accountant is essential.

 

We recommend sparing a few hundred pounds on an accountant to take away this hassle, they may even save you money by making sure you claim for everything you’re entitled to.

 

What about Insurance, is it essential?

Insurance is important to cover your back should anything go wrong. Some insurance is required by law, some is optional, dependant on the types of work you do.

 

There are lots of different insurance types, they are:

 

The Association of British Insurers website provides lots of detailed information about the different types of business insurance.

 

We recommend you look out for insurance providers that offer a service specifically for tradespeople.

 

For more in-depth information on setting up a business, visit link to Setting Up a Business Guide