How to Setup a New Business?

A sound business plan is like a constitution of the business which sets clearly what the business has to do & which direction it has to go. We take decisions like what are you going to sell, where, to whom & how. It acts as a guide in tough economic situations. It takes into account all the contingencies, a business can face and the way to effectively face those contingencies.

The next stage is to put the plan into hard numbers so that we know exactly how much is going in & how much is coming out of the business. Preparing projections from an impartial third party helps in identifying all possible expenses of the business and how can they be minimised. On this basis we can assess if there is any need to apply for finances from bank or institutional investors. We know how the application to raise finance will get through and on this basis, we prepare the supporting documentation.

The biggest factor to consider is, the amount of tax one will pay in all the situations, degree of control, degree of liability you are prepared to accept. Generally starting with a limited company has the advantage; however, there are still situations where it is more appropriate to remain unincorporated. It requires a careful analysis of everyone’s situation to come up with the best possible solution. Even with a company,shareholding pattern has to be very carefully planned keeping into account overall tax savings strategy.

If forming a limited company is the best solution for your business structure, we can get the company formed in one day with the name chosen by you. We can also act as your registered office so that any correspondence from Companies House or HMRC come straight to us & not you and we take the appropriate action without bothering you unnecessarily.

As a business owner, you have to deal with different taxes like self assessment tax, corporation tax, PAYE/NI, VAT, Capital gains tax. All of these taxes are linked to each other and you need an effective planning for each of them. An overall strategy has to be planned so that you can take advantage of various exemptions available and end up paying as minimum tax as possible. We need to settle all important questions like Salary/Dividend ratio, Number of directors, shareholders/partners, % holding between shareholders/partners. This is a highly skilled area and you need a qualified tax advisor like us to give you a solid advice.

If required, we can get your business registered as an employer with HMRC. We process your monthly/weekly payroll, employer’s annual return (P35) and deal with HMRC for regular payroll matters.

We have to see carefully, the product/service you are selling is VATable or not. Sometimes, there are different rules associated with different products/services which have to be adhered. Other VAT planning measures like registering for flat rate scheme, partial exemption are equally important. There is a VAT threshold which mandates business to get VAT registered if they cross this limit. We can plan, how to mitigate this limit so that you can still keep your products/services competitive in the market.

• We help by answering common questions like
• Which expenses are allowed and which are not by HMRC.
• How much expense can you claim as “Use of home as office”?
• What is the best way you can claim car allowance while still using the car for personal use.
• Take on a new employee on payroll or as a subcontractor.
• How much can you extract from the business as salary/dividend/profit