Below you will find the questions we get asked most frequently by both businesses and individuals:

Should I be a sole trader, partnership or limited company?

Like most things it depends on a number of factors: the type of business you are in and in particular your size and profitability.  All of these determine whether there are tax advantages to being set up in a particular way.  There are also other legal and statutory issues that may make you more in need of one structure than the other.

Do I have to be VAT registered?

You are required to be registered for VAT if you taxable turnover exceeds £79,000 (from 1 April 2013).  You can register voluntarily before you reach this limit if you choose to and in some cases it can be beneficial for you to do so.

How do I register for self-assessment?

If you find that you are receiving income which is not being taxed or you have capital gains to declare you can register for self-assessment by completing form SA01 which can be found at www.hmrc.gov.uk or by contacting us.

If you do not register in a timely manner you may be liable to penalties and interest on outstanding tax liabilities.

How do I pay myself?

If you are a director/shareholder of a limited company then you can pay yourself by means of a salary or by declaring a dividend which is paid to shareholders out of its profits.  Advice needs to be taken about the best way to do this.

How do I form a company and how long does it take?

We offer a company formation service.  It is a same day formation service and costs £175.00 plus VAT.  To enable us to do this we need the company name and various personal details of the directors, company secretary (if appointed) and the shareholders.

What to do if I employ someone?

You must register as an employer with HMRC.  We can do this for you or you can do it online www.hmrc.gov.uk.  Once registered you must deduct PAYE and National Insurance from your employee’s salary at prescribed rates.  If you do not do so, or if you make incorrect submissions to HMRC then you may be liable to penalties and interest.  We provide a full payroll outsource service to assist with this burden through our sister company Penelope Payroll www.penelopepayroll.com
at a very reasonable price.