Everyone needs to pay taxes and it’s considered a civic duty to do so – you keep yourself within the limits of the law and you also help the state’s economy. It may be hard for some people to understand this concept, but it’s the taxes that keep everything going in the right direction with everything that you get for free in a country – the public services, the social help and the financial help that social services offer for those in need.
This being said, for those who want to open up a business in the UK, they really need to consider more aspects at once. First of all, starting this kind of activity needs to have a solid financial support, at least in the beginning, until the business starts producing income and enough money for everything you need.
There are certain steps that you have to take, but the legal aspects are extremely important. Let’s see what is needed to get everything right from the first time.
First of all, everything starts out with an idea – what you want to do. There are different types of activities or services that you can offer, and you need to consider what you know bet. You can be a great hair-dresser and you should concentrate on this, if that’s what you know how to do. The next step should be to get the right type of funding – there are different ways to get the money that you need, and if you don’t have enough in your bank account, you could always get a specific loan – if you have the right business plan and if everything is made according to the legislation.
Setting Up the Business
This is where the fun part actually begins – you will need to decide on the legal structure that is adequate for your business, and this needs to be done before you start trading and registering for tax. These are mandatory requirements, and no business can start working without these steps.
In order to find out exactly what you need to do, you can call the tax office number from HMRC and they will give you all the information on the steps you’ll have to follow. There are different types of business, like a limited company, a sole trader, a business partnership, but you can also choose an unincorporated association, if you go for a small organization without profit, or a social enterprise, if you think about having a business for helping communities or people.
However, when you choose one of these forms of business, you’ll have to consider carefully the risks and benefits for each of these types – the financial risk, what takes you’ll have to pay and the control you will have over your business.
Employment and Responsibilities
Talking about taxes brings us to the next topic – what you have to when you decide to employ someone. Some businesses can’t be run with only one person doing all the work – you are the boss after all, and you might get to the point where you’ll need help in managing everything.
When you decide to get someone to help you out, there are certain rules that you’ll have to respect in employing the staff that you need, and one of these rules says that you have to register with HMRC if you become an employer. When you decide the payment, you need to know that it can’t be less than the national minimum wage, and you’ll also need employment insurance.
And even if you work alone for your business, there are still different taxes that you’ll have to pay like the insurance for the business and the license for operating.
Even if all this information might seem a little bit too much for a beginner, a specialized attorney will be able to help you out with everything that is needed for making sure that you operate legally and that all the aspects of your business are within the law, including the taxes and other legal requirements.