The move from employment to self employed can be a confusing one for most business start-ups.
Going from having everything taken care of within your payslip to having to deal with your taxes by yourself can be a scary prospect.
Tax
- The way in which you will be taxed will be very much dependent on the decision made on your business setup
- If you run as a sole trader or partnership you will need to submit a self-assessment tax return on an annual basis which will consider your business profits as well as any other income that you generate as an individual
- If you run as a Limited Company, you will need to consider corporation tax as well as self-assessment for the money you extract from your company
VAT
- Do I need to VAT register my new business?
- If your turnover exceeds £85k over a 12-month period then you must register for VAT. However there are instances where you may not exceed the threshold but it is still in your interest to register voluntarily
- Again, this is something we will consider and discuss when we are looking at the setup of your business
There are various other taxes to consider as well as the above but rest assured we are here to deal with everything for you and we will give you an idea of how much you need to be putting away towards your now annual tax bill or quarterly VAT bills to avoid any future shocks.
Back to 'New Business Support'.
