New to Self Employment
Going self employed is something no-one should do without fully looking into the implications and potential downfalls. Before taking the "plunge" we would recommend you have a full business plan drawn up to assess the strengths and weaknesses of your proposed venture. Most firms of accountants offer this service, and although this will cost, it may well save you substantial amounts of money in the long term.
Once you have taken the step into self employment we would recommend you appoint a qualified agent to deal with your accountancy and taxation affairs as soon as possible.
It is not just a question of opening the doors and away you go, you need to advise the Inland Revenue of your self employed status, you also need to advise the Contributions Agency, and if you are going to employ staff you will need to organise and operate a PAYE scheme. If your business is subject to VAT you need to look at VAT Registration and maintaining the necessary accounting records. HMRC web site contains a section on record keeping which may be of assistance http://www.hmrc.gov.uk/sa/rec-keep-self-emp.htm for sole traders / partnerships and at http://www.hmrc.gov.uk/ct/keeping-records/record-keeping.htm for corporation tax purposes.
Remember the government have introduced fiscal penalties for all business and individuals who do not comply with the relevant legislation and it is therefore essential that you, or your agent, complete the necessary paperwork within the prescribed time period.
Your agent will be able to complete all of the paperwork on your behalf, and advise you on any queries you may have.
HM Revenue & Customs have issued a charter outlining what you can expect from them and what they expect from you, this can be viewed at: -
http://www.hmrc.gov.uk/charter/charter.pdf
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Small Business Service - Myths surrounding starting and running a business
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