Tips for business start-ups

With COVID-19 impacting us all, many found that their job roles changed or were furloughed. As we found a new way of working remotely from home, many looked into starting their own businesses.

For those setting up a business, here’s a look at a few key areas that you need to think about. As you’ll find, there’s lots of factors to consider when setting up your business as what you need to do depends on the type of business, where you plan to work and if you have employees.

How will you register your business?

Firstly, you need to register your business. Being a sole trader, limited company or partnership are generally what most businesses choose to register as.

Sole traders: This is where you are responsible for your business debts. If you earnt more than £1,000 from, self-employment between 6 April 2020 to 5 April 2021. You need to register with HMRC and pay tax through self-assessment each year.

Limited companies: This is where the company’s finances are separate to personal finances. You can find out more about setting up a Limited company here

Partnerships: This is when two or more people run a business and have shared responsibility for the business’ debts.

Your type of business  

There are rules depending on the type of business you run as you may need licences or permits or insurance. This generally applies to businesses that sell food and drink, or a live venue or perhaps a market stall.

You can check if you need a licence for your business here.

There are also considerations to factor in for the type of goods you are selling or buying and where from in the world. Here’s links to HMRC for more information:

• selling goods online
• buying goods abroad
• selling goods abroad
• storing or using personal information.

Your workplace

You also need to think about where you work. For example, if you run a business from home you may need to check your insurance as you may need separate insurance for your business.

Or, if you set up a Limited company then you will need to advise HMRC of your UK registered office address. As the company address is publicly available, you may be able to use your accountant’s office as a Registered Office, with their permission, or appoint an agent who will provide an address.

You may also need to check if you have to pay business rates and factor that into your budget.

If you do rent a property then you will need to carry out health and safety risk assessment.

Managing your financial accounts

If you employ staff then you will need to manage payroll including paying National Insurance contributions and ensuring workplace pensions are set up for those that are eligible.

Business start-up advice

This is just a brief overview of some of the things to consider when setting up your business.

If you need advice and guidance on setting up your business and managing financial accounts, then talk to our team of accountants at McKenzies. We can help to guide you on the forms to complete, legal requirements and help with budgeting and forecasting.