UK company set-up
UK company set-up
When setting up a new business, every decision you make will have a major impact in the business. Getting the right help and advice is very important when setting up, our consultants at Oxford Professionals take great care in providing you with all the help and support needed.
There are a few things to consider before finalising any decisions:
- Advice on the correct structure of your UK company set-up
- Company formation
- Opening a business bank account
- Registering for VAT
- Registering as an employer (PAYE scheme)
Correct structure of your UK company set-up
The structure you choose will define your legal responsibilities - the paperwork you must fill in to get started, the taxes you’ll have to manage and pay, how you can personally take the profit your business makes, and your personal responsibilities if your business makes a loss.
The main types of business are:
- Sole trader
- Limited company
- Business partnership.
Company formation is the process of legally incorporating a business as a limited company or LLP at Companies House. Upon formation, a company becomes a legal individual with its own rights, responsibilities and liabilities. Registering a limited company helps to reduce the financial responsibility of the business’ owners.
Business bank account
Starting your own business can be very daunting, that is why it’s very important to choose the right bank account for your business. Before opening an account, look around to see which bank if offering extra services for new account openers. Offers like 18 months free day-to-day banking so you can spend less time worrying about your banking and more time building your business. Make sure you have all the necessary paperwork for your business ready to show the bank representative.
You must register for VAT if your business’ VAT taxable turnover is more than the annual threshold. Having an accountant deal with all the documents needed to register will allow you to focus on the business and how to keep it running. Once you are registered, you will receive your VAT number and your ‘effective date of registration’, this is the date you went over the threshold. From the effective date of registration you must charge the right amount of VAT, pay any VAT due to HMRC, submit VAT Returns, and keep VAT records and a VAT account before the deadline date.
When employing staff for the first time, there are a few things to remember - decide how much to pay someone, Check if someone has the legal right to work in the UK, Apply for a DBS check if working with vulnerable people or security, get employment insurance, send details of the job in writing to your employee and tell HM Revenue and Customs by registering as an employer. You must register before the first payday, this can be up to 4 weeks before you pay your new staff.