How to register with HMRC?

Self Employed
https://www.gov.uk/register-for-self-assessment/self-employed

Not Self employed
https://www.gov.uk/register-for-self-assessment/not-self-employed

How to register for VAT with HMRC?

https://www.gov.uk/vat-registration/how-to-register
For more information, see the video section on VAT

How to set up a limited company?

Dean can do this for you, only charging the Companies House fee of around £13 when you sign up for a year.

https://www.gov.uk/limited-company-formation

My Payslip tax is too high, what is going on?

Dean can review prior period submissions and provide an explanation.

Common issues include:

● Benefits in kind changes
● HMRC incorrect estimations
● Delays and catchup charges

Should I setup a limited company?

If the sole trader profits are over £40k per year, this may be more tax efficient than operating as a Sole Trader.

See Advantages & Disadvantages.

How to convert a sole trader to Limited Company?

If a sole trader converts to a limited company the sole trader sells assets to the limited company. Money can be taken from future incomes and maybe subject to capital gains, not income tax for the sole trader. The assets should be sold at a fair market price and 1st April would be an ideal sale date/ incorporation date..

Advantages and disadvantages of a Limited Company?

Disadvantages

● More formal with cash restrictions.
● Accountant fees could be three times more.

Advantages

● More professional.
● Easier to gain finance, investment and to sell the business.
● Separate legal entity meaning more protection for directors.
● Potential tax saving and more flexibility with profit distributions.

I am starting a business. What do I need to do?

Research similar businesses and the related industry sector.
Create a business plan, including a marketing strategy.
Choose a legal structure.
Limited Company or Sole trader. HMRC don’t typically need to know until your sales exceed £1000 in a tax year.
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income
Create a system for keeping business records.
Consider insurance.
https://www.directlineforbusiness.co.uk/small-business-insurance
https://www.gocompare.com/business-insurance/small-businesses/
https://www.comparethemarket.com/business-insurance/content/small-business-insurance/
Book a free call back through the ‘contact us’ section for more information.

When to register for VAT?

The HMRC 2023 sales threshold is £85k. However, this is on a rolling basis.

Example1: Sales of £10k in April and you expected £10k of sales every month. You should register immediately.

Example2: £30k of seasonal sales in December, but typically £2k of sales for other months. No requirement to register.

What is your privacy policy?

Please see privacy policy.

FAQs