A Guide to Business Start-up: Starting a Business UK
. So you want to start your own business, but not quite sure where to begin? Maybe you have a fledgling business but need help to move it forward. Coddan CPM is here to help you on the road to self-employment, by offering support from business advice surgeries. Whatever stage you are at, from idea generation through to trading, we can offer valuable support and resources.
Thinking of starting a business? Let Coddan helps you become a successful entrepreneur. This web site, organised by topic and province, provides reliable information on market research, business name and business structure, preparing a business plan, financing, taxation, hiring employees, doing business on the Internet and much more!
Many people start a small business in order to enjoy the perceived rewards of freedom and independence. This is understandable because owning your own business can offer you the opportunity to experience freedom: the freedom to use your own ideas; the freedom to be the boss; the freedom not to be fired; and the freedom to earn as much as you want. The reality of small business ownership can be quite different. Many small business owners will tell you that they work more hours than when they worked for someone else.
The type of business that you enter should complement your experience, interest and/or technical knowledge. It is fine for you to dream about becoming your own boss some day, however, before you put too much work into your business, make sure that the area you choose is the right one for you.
Further information
Steps to starting your own business: setting up as a self employed sole trader is the simplest and quickest way to start a one person business, becoming self employed, employment vs. self employment. In the United Kingdom there are many different options for people looking for employment after school. While some may choose to work for an employer and a boss, others prefer to regulate their own work schedule and become self-employed. Small business starting: if an employee is considering the switch from being regularly employed to self-employed, there are a few things he or she must consider and know first. There is not much paperwork to do or registration fees to pay, bookkeeping and accounting are straightforward, and there are the benefits of being your own boss.
Find out the consequences - and the legal requirements - of setting up as a sole trader here, starting my own business. You will also find out how to meet your responsibilities for paying your own tax and national insurance. Finally, our checklist will help you make sure that you have put your business on a proper legal footing. Anyone can set up in business as a sole trader, although for certain types of work you may need a licence or permission from your local authority. Home business, home based business, business ideas, business directory, work at home business, best home based business legitimate home based business, running a business from home top home business. Home travel business, best work home business, draft home inventory business, UK home based business, low cost home based business in London.
If you run a business from home, you may have to pay business rates for the part of your home that you use for your business. This mainly depends on whether the business area of your home is also used for domestic purposes. If you simply work on a computer in a bedroom, for example, you will probably not have to pay business rates, benefits and rights, how do me become self-employed and National Insurance contributions for self-employed. Income tax, national insurance contributions, value added tax, capital gains tax, inheritance tax, council tax, excise duties, car tax, stamp duty, airport duty, insurance premium tax. The list of taxes that we pay is virtually endless!
Starting Business Online: as a sole trader you will have to pay income tax on any profits from your business.
You must fill in a self assessment tax return each year, detailing your income and expenses. Make sure you register as self employed with HM Revenue & Customs as soon as you start up in business on your own, establishing a business. You will have to make flat rate Class 2 national insurance contributions (NICs) throughout the year. Setting up a monthly direct debit is a good way to ensure you pay in time. Setting up a business: VAT (value added tax) is a tax on sales of goods and services. VAT affects almost every business transaction. If your business has (or you expect it to have) a turnover of more than £60,000 a year, you must charge your customers VAT and send it to HM Revenue & Customs, start-up business UK.
Starting a business from scratch: do you have a long held ambition to run a business? Is it based on an idea you have had experience of, either through work, as a hobby, or from personal experience? Do you want to copy an idea that you have seen elsewhere, and think you have a market for it? Small Business start-up: you are far more likely to succeed if you have relevant previous experience or knowledge, rather than go in blindly. Another avenue can be that of developing part time interests/hobbies, into a full time business. How to set up a business: it can be very useful and informative to view other businesses in the same area that you want to trade with, and talk with them, if possible (Usually in a different geographical area from that which you intend to operate, and for which you pose no threat); it is possible to gain a substantial amount of helpful information in this way.
Planning and preparation is essential to the success of any business, and starting a new business has a higher risk of failure, than purchasing an existing one, becoming self employed and VAT registration, opening small business and getting business license.
Starting business UK: it can be very helpful if you have a partner/spouse who can continue in paid employment until you are able to build the business to a level where you can take out an income. How to run a successful business, it is also extremely helpful to have a partner/spouse who can take a detached view of the business, and give you their observations. Starting a Home Business: it is very easy to spend long hours on/in the business, and for you to be unable to make objective decisions when you are tired or busy, home base business & different types of businesses.
Free and independent business advice to anyone thinking about starting or running a small business in England, starting a Business online, open a new business and commerce - helping the business of today. Business Current Account is your best UK business bank account with an account opening guarantee and online internet banking. Open an account today: offering presentations for a selection of UK based current & savings account products. Company formation UK, limited company formations & registration, electronically lodge online, forming a limited company online using Coddan secure online ordering facility is easy.
This package includes: Registration as a self-employed in 2-3 weeks Practical advice and guidance to help you get your business off the ground Initial consultation free-of-charge Preparation and submission of the appropriate forms to Inland Revenue to obtain National Insurance Number and PAYE Provision of specialised account books, seals and other stationeries (additional fee) Payment of legal and initiation fees The following documents will be posted to you (these documents will be sent via Royal Mail): Written confirmation letter from the Inland Revenue
Business Start-Up: Legal Requirements
When you start working for yourself, you will need to register as self-employed with the Inland Revenue. Once you are registered as self-employed, you will be a Self Assessment taxpayer. You can trade under your own name, eg John Doe, or use another business name, eg AAA Business Marketing. If you are self-employed, you are responsible for paying your own tax and National Insurance contributions. You will need to keep business records and details of your income so you can fill in an annual tax return. If your business turnover is more than the VAT threshold (£61,000 from 1 April 2006) you will normally have to register for VAT. You pay Class 2 NICs at a flat rate of £2.10 a week (2006-2007) if your earnings are above £4,465 per year. Bear in mind that Class 2 NICs do not count towards the additional State Pension, Statutory Sick Pay or Jobseeker's Allowance. Key dates for self-employed tax: 30 September: sending in your paper tax return if you want HMRC to work out how much tax you owe. 31 January: sending in your tax return to avoid a penalty. 31 January and the following 31 July: tax payments.
WAYS TO RUN A BUSINESS: BUSINESS SUPPORT, INFORMATION AND ADVICE
You are not alone if the thought of running your own business has crossed your mind. Even if your vision of a small business differs from your neighbor's, you probably dream have being your own boss and of providing a needed service or creating a cool new product.
However, your very first small-business decision may be to admit that you are not ready for this career - at least not yet. If you are straddling the fence, Coddan CPM will uncover whether this career works for you. You will also gain insight into getting your personal finances in order before exposing yourself to the risk of a new business, and discover how to draw a roadmap to reach your career destination. This easy-to-understand guide is also for those who want to start a new business.
To start a business you will need to choose or create a business plan. While this is an obvious step many people who want their own business don't have an idea, just the desire to be an entrepreneur. For the budding entrepreneur, there are many options; buying a franchise or an existing business, or looking to others for ideas for a start-up business. Once you have decided on the business you wish to start, then the real work begins. The simplest form of business entity is the sole proprietorship. If you choose this legal structure, then legally speaking you and the business are the same. Establishing a sole proprietorship is cheap and relatively uncomplicated.
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We also answer your business questions by running a website and a telephone call handling centre (between 9:30 AM and 17:30 PM, except holidays): 0800 081 1510 or +44 (0) 207 637 3881, fax: +44 20 7681 3318. We may answer your questions at our main office in central London (W1, 5 Percy Street) - free of charge for first-time business starter entrepreneurs. Our consultants and business start-up advisors speak English, Spanish, Italian, and Russian. Please do not hesitate to contact us directly and apply for a meeting with us if you have any questions. We see too many investors who might have avoided trouble and losses if they had asked basic questions from the start. If you would like to arrange a meeting to discuss how to start your own business, tips on funding, employing people and the biggest causes of failure for start-ups, please contact us.
It does not matter if you are a beginner (small or new business start-up questions - your first knowledge search answers are free of charge!) or have been investing for many years (professional questions about tax planning, business planning, tax optimisation cannot be answered free of charge); it is never too early or too late to start asking questions. It is almost impossible to ask a dumb question about how you are investing your money. Do not feel intimidated. Coddan CPM offers assistance and resources for those running or starting a business in England, Scotland, Northern Ireland or Republic of Ireland. Coddan CPM also offers business-planning, companies incorporation, accounting and consulting services in USA and offshore countries.
Start a Business in England, Scotland or Ireland, small business advice, business planning in London (UK), Edinburgh (Scotland), Belfast (Northern Ireland) or Dublin (Republic of Ireland). Setting up and running a business is a time consuming task - you need to be dedicated and focused and able to structure your time in order to be successful. The rewards of starting up your own business can be great, but think carefully if you have the attributes and right sort of personality to cope with going it alone.
Setting up a small business involves a number of important steps if you want to get things right first time. There will always be an element of trial and error in starting up a business; however we hope this overview will guide you through the initial steps, based on the experiences of the Coddan CPM team and our contributors.
Of the four million businesses in the UK, over 99% are 'small' (0-49 employees), according to government data. At the start of 2003, 46.2 per cent of business employment was in small businesses. Even more interesting is the fact that 2.9 million of these small businesses have no employees at all - the majority of small businesses are operated by individuals, or by a small group of people. Small and medium-sized enterprises (SMEs) together accounted for more than half of the employment (58.2 per cent) and turnover (52.4 per cent) in the UK. In the UK today, over 2.5m businesses are sole proprietors, around a million are limited companies, while some 540,000 are partnerships. But which is best for you?
CHOOSING THE BEST OWNERSHIP STRUCTURE FOR YOUR BUSINESS: SOLE TRADER (SELF-EMPLOYED)
You should think carefully about which structure suits your particular circumstances before making a decision. Choosing the wrong structure could expose you to unnecessary costs and risks, while failure to address certain practical issues may result in you falling out with your business partners or associates. Having said that, the status of sole trader suits many professions where starting up does not require major investment, and where a skill - such as carpentry, bricklaying or freelance services - is just as important as business acumen. It will not stop you from employing people when you start to get busy, but it will allow you to keep a tight grip on your business and to run it as you wish.
Today, there are several business entity options available for entrepreneurs. Like anything else, each of them has advantages and drawbacks:
Sole Traders:
General Advantages of UK Private Limited Companies:
1. Liability is, in the vast majority of cases, strictly limited to the investments made by the shareholders. 2. Company Officers are not personally liable for their actions unless there is a clear and serious breach of their fiduciary duty. 3. Limited companies often benefit from greater prestige than their sole proprietorship or partnership counterparts. The reason is because such an enterprise normally requires more planning and thus is deemed more credible. 4. Limited companies often benefit from significant tax advantages. In fact, many countries around the world give exclusive tax incentives to this type of entity. 5. The rights of shareholders are normally clearly defined and protected. 6. Corporate taxes only become payable after the end of the financial year. This means money that would otherwise be taxed on a monthly or quarterly basis, is available to earn further interest before the final payment of tax. 7. You need only appoint one Director and one Shareholder. 8. Directors can be corporate bodies or private individuals. 9. A Director can be of any nationality. 10. All companies must appoint a company Secretary who can be of any nationality.
Most people who start in business do so as sole traders. They work on their own. They alone receive the income and are liable for any debts. The financial costs of starting up are minimised by working alone from home. It can be a lonely life but, instead of colleagues, you have customers. Business people who work in the same town often join organisations such as the British Chambers of Commerce or networking groups such as Business Network International where they meet other people who are in a very similar situation to themselves. Talking your problems over with other people in business, provided that they are not competitors, can help.
Being a sole trader is the simplest way to get started in business (although not necessarily the best, you need to get professional advice before taking the plunge). Once you have informed the government agencies of your intentions to go self-employed, you can start trading right away (subject to any specific licences you might require in your line of work).
As a sole trader, you can quickly adapt to changes in your business with minimal bureaucratic changes required and you have complete control over your business and accounting affairs. However, a sole trader is also ultimately responsible for any liabilities should anything go wrong. It is worth spending time considering which set-up company format is best for you. As a sole trader, you will not need to notify Companies House, nor deal with any administrative or accounting requirements which are required of Limited Companies. If you start working for yourself, you must register with the Inland Revenue as self-employed, even if you already send in a tax return. There are some exceptions and special rules for particular industries, like the construction industry.
Essentially, your business income is counted alongside your existing personal income, so the accounting side of your business will be very straightforward. As the name suggests, you will be personally liable for any debts you incur in the running of your business which you wouldn't be under the Limited Company route. In terms of accounting, you will need to submit an annual self assessment form to the Inland Revenue and keep accurate and up-to-date records of all business transactions and accounts. You will also be pay income tax on all profits and pay national insurance contributions on those profits. Losses can be offset against tax on other income. In the April after your business starts, the Inland Revenue will send you a Self Assessment tax return to fill in. The Revenue will also use the return to assess any profit-related (Class 4) NI contributions you may need to pay.
Self-Employed people are also liable for Class 2 NI contributions (currently £2.05 per week). If your income from self-employment is low (below £4,215 in the tax year 2004-05), you may be able to apply for the Small Earnings Exception. Also, if you're already paying NI contributions in another job, you may be able to defer paying your Class 2 contributions until the end of the tax year.
Even though you will have registered as "self employed" when setting up, you won't automatically be VAT registered. You do not usually need to register for VAT until your turnover reaches a certain limit in any 12 months, or you expect it to do so. This limit - the 'VAT threshold' - is currently £61,000. Your annual turnover is normally the total amount of money coming into your business from the goods or services you sell. You can read our Complete Guide to VAT.
Self-Employed Advantages: Easiest and least expens
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Business Start-up for Beginners
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This package includes:
Registration as a self-employed in 2-3 weeks
However, your very first small-business decision may be to admit that you are not ready for this career - at least not yet. If you are straddling the fence, Coddan CPM will uncover whether this career works for you. You will also gain insight into getting your personal finances in order before exposing yourself to the risk of a new business, and discover how to draw a roadmap to reach your career destination. This easy-to-understand guide is also for those who want to start a new business. 
You should think carefully about which structure suits your particular circumstances before making a decision. Choosing the wrong structure could expose you to unnecessary costs and risks, while failure to address certain practical issues may result in you falling out with your business partners or associates. Having said that, the status of sole trader suits many professions where starting up does not require major investment, and where a skill - such as carpentry, bricklaying or freelance services - is just as important as business acumen. It will not stop you from employing people when you start to get busy, but it will allow you to keep a tight grip on your business and to run it as you wish. 
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Easiest and least expens