Frequently asked questions
Explore our FAQ page for quick answers to your questions
What’s the difference between a sole trader and a limited company?
The quickest way to get started in business is as a sole trader. You just need to register for self-assessment with HMRC and complete an annual self-assessment tax return. Operating as a limited company or Ltd for short, requires you to register the company name with Companies House and register with HMRC for corporation tax. A limited company is a separate entity to you as a person, so all the cash, assets and liabilities belong to the company. Check out our blog for greater detail.
What is Making Tax Digital?
Making Tax Digital or MTD for short, is a government initiative to create s digital tax system. The idea being it will be easier for individuals and businesses to get tax right and keep up to date with their affairs. Individuals and businesses already gave access to a digital tax account. This government project is continually developing, but April 2019 is the currently the key date for VAT registered businesses.
Is it difficult to change accountant?
Not at all. We make the process as painless and quick as possible through our Easy Switch Service.
I want to set up my own business as a self-employed. What should I do?
If you want to start working as self-employed, you must register with HM Revenue & Customs, but first make sure you have a National Insurance Number. After the registration, you will receive your Unique Taxpayer Reference (UTR) and HMRC will set up the right tax and National Insurance contributions records. You should keep your UTR safe because you will need it when completing your Self-Assessment tax return.
When should I register for VAT?
You may need to register for VAT if you are doing business in the UK as an individual, a partnership, a company, an association, a charity, a local authority or any other organisation or group of people acting together under a specific name.
What is a Company Tax Return?
A Company Tax Return is a document which is filed for each accounting period by companies liable for Corporation Tax. A company has to file a return each month, even if it has not made any profit.
How detailed does my Business Plan have to be?
Your business plan will help you flesh out your idea and get a better feeling of whether you are ready to go ahead. Taking time to complete a thorough business plan before you start your business will reduce the risk of you missing something.
Do I have to set up a Limited company?
If you wish to trade and do not use a limited company you will be personally liable for the debt of your business. If you have assets or savings they are vulnerable to a claim made against you.
It may be easier to attract people to invest money in your business.
Obtaining bank loans may be easier.
There is no higher rate tax bands.
In the event of a partner leaving or somebody dying it is easier to continue the business.
It is easier to sell the business.
You have better standing in the public eye.
It can assist in the protection of a name.
Subcontractors and agency workers will find it easier to obtain work.
I want to close my business, what should I do?
If you need to close your business you should plan it carefully. First of all, it is important that you inform HMRC of your intent. Only then will you be able to settle matters related to tax and National Insurance. In some circumstances it is possible to extend the deadlines for payments or even to claim back some tax or National Insurance.