New small business owner?

Have you recently made the decision to become your own boss? It is an exciting prospect for you and your family. As is common with many small startups, there’s a good chance that no matter how well you’ve planned, there have been at least a few unexpected roadblocks. Most new business owners realize that the complexities involved in their accounting practices amount to much more than keeping an accurate ledger of money coming in versus money going out. Not only that, but there are also licensing considerations. Fortunately, with a proactive approach and access to the right information, your first year as your own boss doesn’t have to be overwhelming. Here are some things you need to know from an accounting aspect.

Your first priority, if you haven’t already, is to register with HM Revenue & Customs. You will need to determine if your business has any corporate tax liability, and you will also need to ensure that your business tax returns are filed by the due date. That being said, even if these are not considerations for your particular business structure, you still need to register with HMRC.

Any idea how your business is structured? There are legalities associated with these issues and it is crucial that every detail is carefully considered to ensure accuracy. An accounting firm might be your best option. You can provide assistance and guidance as you navigate the murky waters associated with the different states of self-employment. Not only that, but building a strong relationship with your accountant can be one of the best investments you’ll ever make. There’s a certain peace of mind associated with locating people who share the same vision for your business as you do and whose goals mirror yours. The many business structures include:

• Deductibles

• Social enterprises

• Limited Liability Companies (LLC)

• Limited Liability Companies (LLP)

• Sole owner

• Free-lancers

• camaraderie

Another detail that many small businesses are unaware of is HMRC’s requirement that any change to a company’s structure must be commemorated through change requests. There are timing considerations you need to take into account and it’s up to you to make sure you’ve covered all those bases.

When registering your business with HMRC, you will receive by post a package containing various forms, notes and the CT41G, also known as ‘new company details’. It is important that this form receive the highest priority as you must review it and return it completed and signed.

Finally, help is available. You can easily locate the various legal structures and discern which structure will best suit you and your new business needs by visiting the HMRC website. Other options you can do conveniently online include registering your new business, locating tax rates and allowances, and even finding tips on choosing the best accountant for your particular business.

While starting a new business is an exciting time, the last thing you want to do is create an unnecessary burden by missing out on some small detail that will jeopardize your hard work. Cover those bases early to ensure that an overwhelming feeling that you’ve missed the details doesn’t cause loss of sleep.